The decision by President Prabowo Subianto’s administration to expand the cabinet from 34 to 48 ministries is starting to shape Jakarta’s office space market in unexpected ways. The addition of new coordinating ministries and government bodies has pushed demand for office buildings higher — a trend that property observers say hasn’t appeared in past administrations.
“There’s a new trend we haven’t seen before — the creation of more ministries and agencies. Some still don’t have dedicated office buildings and are forced to share space or lease temporary offices,” said Ferry Salanto, Senior Associate Director at Colliers, during a press briefing on Wednesday (July 9, 2025). “This could boost demand for office space and lift occupancy rates, and we’re already seeing signs of it.”
Among the ministries affected is the Ministry of Housing and Settlement Areas (PKP). It still operates from Wisma Mandiri II, as it was previously under the Ministry of Public Works and Public Housing (PUPR), specifically in the Directorate General of Housing. Meanwhile, the newly formed Coordinating Ministry for Food Affairs (Kemenko Pangan) also hasn’t secured a permanent office and is now based in Graha Mandiri.
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The rise in office demand is good news for building owners. But it comes as the government is also trying to cut costs. Ferry noted, “On the other hand, new supply will stay limited until 2027, especially within the CBD. This could actually bring balance to the market — demand grows, but supply isn’t increasing fast, so it can push occupancy higher.”
Market data shows there was no new supply in the CBD during both the first and second quarters of 2025. Total office space stands at around 11.2 million square meters, with about 70% located in the CBD. Across 2025, the city expects an additional 125,000 square meters of new office space — all of it outside the CBD.
“Developers are still waiting for the right momentum to launch new projects. That might not happen until 2028 or at least over the next three years,” Ferry explained. Within the CBD, annual supply additions also remain small.
Despite the government’s push for efficiency, the need for more space is hard to ignore. As some ministries continue to operate from shared or rented offices, the growing size of Prabowo’s cabinet has quickly become a driver for fresh demand in Jakarta’s office market — and that demand may only increase as these new ministries look for permanent homes.
