If you look at most expatriates, they are here because of foreign investment because their companies are operating here, so foreign investment has changed a lot.

Previous years there used to be a lot more oil, mining, commodities based, now the price of oil and commodities is all gone so companies are not investing as much, and more Chinese companies are investing in Indonesia in terms of infrastructure and other logistics and other investment. Consequently when those investments are made, people related to that project will be travelling and relocating to the country. One of the reasons there’s more from Chinese companies in Indonesia, and less from traditional markets like the US or UK or Australia. It’s a different type of investment that’s happening now, and it might not be as labor intensive.

Expat numbers are down considerably and we see less people relocating with wife and three kids and a dog and more people singles or couples on a shorter project basis, maybe three or six months. There’s more of that, where companies will be utilizing people on a shorter project basis rather than long term relocation. We certainly still do have people staying with us many years but its less than it was in the past. There’s a lot of landed houses in Jakarta, with swimming pools and gardens and things, and the vacancy rate on those is getting higher. That is having an effect on the rental housing market.

The people traveling these days might not always be the most senior executives in the company who require five star accommodation. It’s becoming more middle manager type of people. You can stay in a hotel room for a certain amount of time but a serviced apartment that is fully managed with a kitchen and washing machine gives you a bit of the comforts of home. People who do want to do some cooking or put their feet up, it’s a more comfortable environment so people who do need to stay for three or four months, a serviced apartment is ideal.

Typically people stay two to three weeks in a hotel and then they go around on weekends looking at serviced apartments or other accommodation. We’re seeing a changing dynamic of less families, less longer term relocation and more project-based relocation of individuals. That’s probably also reflective of the different ways of work today, utilizing technology around resources where people can be working on the go and don’t always need a physical presence. That’s the way work is going now.

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