The Business of Instant Office
Despite steep fuel price hike, the weakening of the Rupiah and an increase in interest rates in year 2005, PT Colliers International Indonesia and PT Procon Indah remain hopeful that the commercial sector of the property market will see greater activities in 2006.
And trusting a tried and tested recipe, most businesses remain unshaken in the belief that they should locate their office in a good building at a strategic location for their business to progress and flourish. The old adage of first impression counts seems to live on.
At least this is the concept that a group of niche instant office space providers has come to understand well. Not only do they offer good office space at strategic locations, their facilities often come with other business services necessary for a business’ day-to-day operation. And ranging from basic secretarial services to offices with a variety of sizes (for 1 to 40 people), there is even the virtual option.
Mainly targeting those businesses with limited capital, these providers have designed their products such that it is possible for small business owners to operate in the same capacity as larger, world-renowned multinational corporations in the most prestigious buildings in downtown CBD Jakarta; complete with office facilities such as furniture, sophisticated telecommunication system, unlimited fast-speed broadband internet, at a fraction of the capital costs put in by his fellow neighbour.
The concept is thus appealing. And fast selling. It targets newly established companies with little capital, time and resources, and/or to foreign enterprises that have just started their operations in Indonesia, and are keen to explore new opportunities at low risks and minimum investment.
In the conventional space concept, the minimum term commitment starts from at least 6 months to a year. In the instant space concept, you are allowed to rent the space for even an hour. And of course, it can stretch a day, a week, a month or even a year. And more corporate than your hotel business center, such instant office providers often cater for international office facilities, plus a range of other human resource services : reception operator service, secretarial service, consulting services – the list goes on.
CEO SUITE is one of such operators. Operating since 1997, the company is one of the first pioneers in their industry, according to its Founder and President, Ms Mee Kim. CEO today offers instant office space for rent in 2 of the most prestigious buildings in the Semanggi area, namely Wisma GKBI (Association of Indonesian Batik Cooperatives) and the Jakarta Stock Exchange Building. The office space rent at CEO SUITE at these top locations varies from US$8 per hour, or $700 to $5000 monthly.
And though the concept of instant office has yet to gain the kind of popularity and demand in Indonesia as compared to other Western countries, this concept is however slowly gaining popularity considering that CEO achieves 80 per cent occupancy all year round.
Mee Kim says CEO SUITE has some 300 clients in Jakarta alone. Globally, CEO has over 700 clients in Jakarta, Singapore, Kuala Lumpur, Shanghai and Beijing.
With the progress of information technology, there remains much prospect for CEO SUITE in the property business considering the versatility of such instant offices.