Virtual Office Trend In Indonesia

Nowadays, we have seen more and more start-ups are established, thanks to the country’s creative young people and the rapid growth in the digital industry (Read: How to open an e-commerce company in Indonesia). The good news is Indonesia has the highest number of start-ups (around 2000 companies), compared to its ASEAN neighbors. This condition affected to the development of digital industry, also with the office trend.

The number of start-ups is expected to increase sixfold by 2020. This fact indicates how Indonesia’s economy is strengthening and the availability of technology supports the country’s digital industry. Technology enables people to work remotely, anytime, anywhere without having to leave home too often.

 

The existence of small and medium businesses (SMEs) is also followed by a new office trend in Indonesia: the use of the virtual office. 

 

Read: The most common questions about office space

Why virtual office?

In this current situation when the price of an office building keeps soaring, business owners also have to think about paying the bills for electricity, maintenance, and other things. Virtual office comes as an efficient solution. By renting a virtual office, they can save budget and boost efficiency.

The concept of a virtual office is understood differently by many. Some assume that virtual office is a concept that moves office works to a home equipped with technologies such as VoIP and video chat (Read: How to get virtual office in Jakarta). While other think that virtual office is simply a business that focuses on office address rent.

The virtual office usually offers office infrastructures such as real offices (for example; meeting room with a PC, a printer, video conference etc). Business owners can have a name card with the address of virtual office they are renting. Most virtual offices are in the prestigious building in business areas and this boost prestige among business owners.

ReadComparing virtual office and conventional office

Story of Virtual Office

Historically, the development of serviced office started in 1995-1996, when Indonesia enjoyed growing investment that led to an increase in office building demand from national and multinational companies. The first phased in virtual office development peaked in 1999 when there were almost 8,000 square meters of new additional space in the CBD market. However, this business also had to deal with challenges due to the country’s economic and political crisis until 2005.

Virtual Office Today

As more developers are focusing on developing virtual offices, more and more companies gain benefits from renting virtual offices as they can boost efficiency in business. They only pay renting fee for certain hour when they have a meeting with clients.

Fortunately, there is a good news for virtual office users. The Jakarta Administration revised the regulation by allowing companies using their virtual office addresses for their business address. The maximum validity of virtual office address in one year and it can be extended. The same also applies for business permits.

This new policy sounds a good news for companies with limited budget to rent a permanent office building. Meanwhile, Indonesia’s Creative Economy Body (Bekraf-under the auspice of the Ministry of Trade) supported the existence of virtual office. Currently, there are more than 50,000 companies using virtual offices.

 

If you need further info about how to get virtual office in Jakarta, you can contact us or drop your comment in the form below.

References:

https://m.tempo.co/read/news/2016/01/28/090740218/kemendag-virtual-office-hanya-dilarang-urus-izin-resmi

http://virtualofficeinjakarta.com/2016/05/04/new-regulation-of-virtual-office-in-jakarta/

https://www.pcplus.co.id/2016/10/berita-teknologi/di-2016-jumlah-start-up-di-indonesia-tertinggi-se-asean/

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