The slides in this presentation were used to accompany a talk given on April 15 th, Neither the information contained on these slides, nor the

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2 The slides in this presentation were used to accompany a talk given on April 15 th, Neither the information contained on these slides, nor the accompanying talk and/or recording thereof construe legal advice. No attorney/client relationship is formed through the viewing of these slides nor listening to any audio recording of the talk. This presentation may contain references or links to statues, regulations, or other policy materials. The information provided is only intended to be a general summary.

3 I. GENERAL MARKET DESCRIPTION A. Office Despite ongoing soft inquiries and transactions during 2015, a large office leasing transaction of 13,000 sqm was recorded during the fourth quarter 2015 coming from the proposed PCPD in SCBD complex by Citibank for their relocation in A positive net take-up of 36,650 sqm was recorded during the reviewed quarter, and the whole 2015 s net take-up reached 56,800 sqm. Average occupancy rate fell further to 85.56% (a significant decrease from 94.46% in the previous year), due mostly to the large additional supply over year B. Residence B.1. Condominium Up until September 2015, condominium market experienced a decrease compared to in However, at the end of 2015, the overall performance is slightly improved although is not as strong as 2014 s figure. Sales rate of existing condominiums in the Greater Jakarta area was recorded at 98.3%, increased by 0.8% quarter-on-quarter. The occupancy rate was 66.6%, going up by 4.7% from that in the previous quarter. B.2. Apartment 2015, no new Purpose Built Rental Apartments were delivered or even planned during In Serviced Apartment sub-sector, there were 3 new Serviced apartment projects launched the year. Serviced Apartments supply outside Jakarta (in Cikarang, Karawang, and Bekasi) increased by 9.4% over Q The new supply came from DelonixHotel extension which contributed 80 units to the total supply of 931 units. In next year, there will be additional supply of about 345 units from the completion of 2 proposed projects. Occupancy rate of serviced apartments outside Jakarta experienced a slight 0.5% quarterly increase from the last quarter, to 69.5%.

4 Jakarta Map Bekasi Map Karawang Map Cikarang Map

5 II. BUSINESS PERSPECTIVE Indonesia Economy Overview Population: 252,812,245 GNI per capital (US$) 3,650 Doing Business 2016 rank : 109 Doing Business 2015 rank: 120 Doing Business 2016 DTF: 58.12% Doing Business 2015 DTF: 56.73% Source: World Bank Group

6 III. LEGAL ASPECTS The government has issued Regulation No. 103 of 2015 on the Ownership of Residential Property by Foreign Citizens Domiciled in Indonesia ( 2015 Regulation ). In essence, the 2015 Regulation redefines the framework for foreign citizens ( Foreigners ) living in Indonesia who are looking to acquire properties for residential purposes. Previously, the same matter was regulated under Government Regulation No. 41 of 1996 ( Previous Regulation ) A. Ownership Limitation Foreigners who live, work, invest or who are generally of benefit to Indonesia may now take possession of property under the so-called right-to-use (hak pakai) land title. This right to use title, however, may only be granted to Foreigners who are in possession of valid residential permits. Note that Foreigners may only extend and renew their right-to-use title periods if their residential permits are still valid.

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8 B. Transfer of Rights The 2015 Regulation allows for the aforementioned property to be inherited after a Foreigner has died. However, their heir(s) must also have secured a valid Indonesian residential permit. Furthermore, the 2015 Regulation also mandates that a Foreigner must relinquish his/her land and property title to an eligible party if they or their heirs are no longer living in Indonesia. This release or transfer must be undertaken within one year (maximum), otherwise the following measures will be imposed: a) For a house built on land designated with a right-to-use title: the house will be auctioned off by the state and the auction gain will be transferred to the former house owner; or b) For a house built on land designated with a right-to-use title that derives from a freehold title: the house will be given to the freehold land owner

9 VI. PRICES A. Office

10 B. Residence B.1. Condominium B.2. Apartment

11 VII. INDONESIA PROPERTY GROWTH Source:

12 VIII. OTHER FACTORS (Indonesia Property Market Warning 2016)

13 ABOUT US Location : Jl. Bungur Besar Raya No. 55/2D, Kemayoran, Central Jakarta, Indonesia. Expertise : 1. Dispute Resolution Practice 2. Intelectual Property 3. Banking & Finance 4. Energy, Renewable Energy & Projects 5. Corporate Services Tel. +62 (0) Fax. +62 (0) *enquiries@sutedjaassociates.com :

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