Back to Business: The Future of Indonesia’s Offices

• Indonesia leads globally with 87% of employees under return-to-office mandates
• Employees embrace office return but demand upgrades – nearly 90% report positive sentiment about being back, yet two-thirds want better amenities and flexible work arrangements in exchange
• AI readiness sets Indonesia apart – 76% receive AI training, but generational gaps require targeted programs to ensure all workers are future-ready

Indonesia is a global leader when it comes to return-to-office (RTO) mandates. Employees in the world’s fourth most populous country are generally happy to be returning to the corporate workplace after years of pandemic related disruption. However, in exchange for their attendance in the office, they want their employers to provide best-in-class workplaces, a more flexible workday and enhanced amenities.

JLL’s Workforce Preference Barometer is a global survey which includes 3,100 workers in nine APAC markets across multiple industries including financial services, technology, manufacturing and public institutions. The survey also includes 150 corporate employees in Indonesia whose responses should shape the strategies of both real estate occupiers and investors. 

1. 87% of corporate employees in Indonesia have some sort of RTO mandate or structured hybrid program – more than anywhere else in the world.

Nearly two thirds of Indonesian employees have a full time RTO mandate – almost double the APAC average and significantly more than hybrid centric markets like Australia and Singapore.

1. 87% of corporate employees in Indonesia have some sort of RTO mandate or structured hybrid program – more than anywhere else in the world.

Nearly two thirds of Indonesian employees have a full time RTO mandate – almost double the APAC average and significantly more than hybrid centric markets like Australia and Singapore.

All but 13% have been asked to work a fixed number of days in the office and this is also significantly higher than the global (66%) and regional (71%) averages. This appetite for the office is giving a much-needed boost to a market where the average vacancy rate exceeded 37% at is peak. An unprecedented volume of new supply was the primary driver of rising vacancy but that supply wave is now over and demand has started to pick up – especially for high-quality grade A buildings.

Demand in 4Q25 was the strongest since the third quarter of 2019 and there will be no new completions until 2028. As workers return to offices and vacancy rates fall, available space in Jakarta’s Premium buildings is becoming increasingly scarce. Occupiers with large space requirements should act now in order to secure high-quality offices.

2. Returning to the office is not a chore for Indonesian employees. 87% report positive sentiment (72% globally) but they want quality offices and flexible workdays.

 Three quarters of Indonesian office workers believe they work better together in the office (50% globally) and more than half prefer to work from the corporate workplace. 

However two thirds want better office amenities in return for their attendance (39% globally). Many corporates are rising to the challenge in this regard offering enhanced technology, stipends and improved office fit-outs. In other areas, however, there is a notable gap in what has been promised by employers and what their employees expect. Indonesian employees want enhanced in-office amenities and greater flexibility in the hours that they work.

The demand for flexibility goes beyond just working hours. While employees are generally happy to be back in offices, they want to retain some of the flexibility that they enjoyed during the pandemic. More than half of Indonesians want some sort of flexible work arrangements but this flexibility is only available to 44% of the workforce.

The matter of flexibility is a critical talent attraction and retention issue. 54% of Indonesian employees would choose a new employer based on flexibility and this is broadly in line with the global average (53%). The clear message for employers is to try to understand the needs of their workforce and adapt their workplaces, amenity offerings and hybrid policies to mitigate retention risks and attract the best talent.

3. The Indonesian workforce is more AI ready than its peers; 76% of Indonesians receive AI training on new applications – more than any other market in the region

Widespread AI training programs are an encouraging sign for Indonesia and perhaps reflective of the young, dynamic population. But while a majority of Gen Z employees across APAC feel adequately trained to use AI, just 15% of over 50s feel the same way so there is a danger of certain cohorts being left behind. Training programs need to be up to the task of creating a future-ready workforce and workplaces need to be sufficiently equipped.

Firms need to implement training programs that address skills gaps across generational divides. They should develop AI enabled collaborative workplaces that enhance productivity and innovation.

CRE leaders are working more closely with HR than ever before and as a team they need to align workforce strategies with the physical workplace. This is particularly important in areas like talent attraction and retention, employee experience and organizational design for hybrid work models.

Investing in wellness amenities is key but so is demonstrating the effectiveness of wellness-focused space planning. CRE and HR should jointly evaluate wellness related real estate investments against talent retention, employee satisfaction and productivity metrics.

Finally, comfortable non-intimidating technology learning environments for all age groups will ensure that all employees have the tools they need to be future ready.