Shirley Christie – The news will come as little surprise to those who frequent Jakarta's top hotels or have an eye on snapping up units in the latest luxury apartment complex, but the capital's standing among the global super-rich should soon land it among the world's top 30 cities.
That's according to a new global wealth report compiled by Citi Private Bank and property consultancy Knight Frank, which puts Jakarta at 48th in a ranking of world cities based on their attractiveness as an investment destination for those with at least $10 million in assets.
The report, based on a poll of 160 Citi Private Bank wealth advisers, predicts Jakarta will rise to 28th in the world by 2020.
That means it would surpass Taipei, Delhi, Abu Dhabi and Seattle. New York and London are the top destinations now and are predicted to remain so in 10 years, with Hong Kong and Singapore staying at Nos. 3 and 4.
The prediction was reasonable, said Artadinata Djangkar, a director at commercial property developer Ciputra Property.
"Top businessmen come to Indonesia for business trips and to explore investment opportunities," he said on Sunday, adding that recent increases in foreign direct investment in Indonesia were a good indicator of how it had outstripped emerging neighbors such as Vietnam.
Property and luxury living were the areas that were most telling, he said, although Jakarta was not a holiday destination like Singapore, Hong Kong or Shanghai, but primarily a investment destination.
"Jakarta is not far behind other Southeast Asian cities when it comes to luxury residences," Artadinata said, with at least seven five-star hotels spread around Jakarta. "The existence of these hotels shows that developers have realized there is occupancy potential in the city. This number will keep on growing."
The advisers polled almost 5,000 people – referred to in the survey as "ultra-high-net-worth individuals" – from 36 countries and worth on average more than $100 million. The poll was held online in January, with the advisers asking clients to choose their top 10 cities in order of priority.
Arief Rahardjo, head of research and advisory at real estate consultant Cushman & Wakefield, said he doubted the prediction would come true without changes in regulations.
"Right now, it is not possible for foreigners to buy residential property in Jakarta. They are only entitled to 'right to use' [hak pakai]," he said on Sunday.
The Attitudes survey, released with the wealth report, showed property accounted for 35 percent of clients' investment portfolios. It said luxury market prices in Jakarta are about $2,800 per square meter, almost half the price in Kuala Lumpur or one-tenth of Singapore and Hong Kong.