As an expat in Indonesia who not only lives and works but also starts a business, one of the important considerations for starting a business is renting a shop and office space in Indonesia. Previously, we discussed how to rent a property as a residence for expats; now it’s time to find out more about renting shop and office space in Indonesia.
Renting Shop and Office Space in Indonesia
In addition to Indonesian citizens who can own a home in Indonesia, foreigners also have access to settle down and have their own home here. However, of course, in terms of licensing, native citizens face fewer obstacles than expats.
In establishing a business in Indonesia, expats must comply with Law No. 25/2007 on Capital Investment and Government Regulation No. 23/2010 on the Implementation of Capital Investment.
It should be noted that before opening a business, foreigners need to be aware of the Negative Investment List (DNI) that applies in Indonesia, as there are business fields that are open to foreigners with certain conditions and others that are open without any conditions.
After fulfilling these requirements, you can begin looking for shops and office spaces in Indonesia.
Renting a shop and office space cannot be done carelessly. You need to pay attention to many things and consider them so that you don’t make the wrong choice. Pay attention to the following tips when renting a shop and office space to ensure you make the right decision.
1. Choose a strategic location
The first tip is to determine the location of your chosen shop. There are many options for shops and offices, but they are located on different streets. Some are strategic, while others are not.
It is important to select a shop in a truly strategic location so that it makes it easy for you to move around. If the shop is to be used for business, a strategic location is clearly beneficial.
When renting an office, location is also crucial. The address listed on your company’s website or business card should remain the same, so choose a location that is most suitable, strategic, and representative of your business.
2. Consider the size of the shop and office space
Next, consider the size of the building. This is important because it will determine your needs while occupying the shop, whether it is for business or even for temporary residence.
Make sure the shop and office space you are going to rent has the area you want so that it remains safe and practical. Don’t let it be too small and cramped, as this will limit your space and mobility.
3. Come and survey in person
The next step to take in determining office space rental is to conduct an in-person survey. This way, you can get a general idea of what kind of office you want to rent. Consider the daily travel distance from home, the number of people working, and the needs of the area.
4. Check the condition of the building
The next thing to consider is the condition of the building. The condition of shops can vary; some are new, while others may be worn out if they have been built for a long time.
For shops, you may want to consider newer buildings as the appearance of the building significantly affects the customers who will come. Also, check the condition of the shop that you truly need, as this will relate to the price offered. If you want comfort, it would be better to choose a place that is well-maintained and clean.
5. Check the Completeness of Building Documents
This tip is crucial to avoid any legal trouble. Before you decide to rent a shop or office, ensure the documents and legalities are complete.
Check the ownership status of the shop; is it HGB (Hak Guna Bangunan) or SHM (Sertifikat Hak Milik)? If it is still HGB, check the validity period. Also, ensure the shop has an IMB (Building Permit) and can be used as a business space.
6. Pay attention to the facilities offered
The facilities offered should also be considered when determining the rental of office space. Ensure the facilities align with your business needs, and try to secure as many facilities as possible that will support your business to grow and run smoothly.
In addition to facilities, you should also ask the building manager about the condition of the area surrounding the building you wish to rent.
7. Calculate rental costs in detail
Remember, even though shops and office spaces have electricity and water facilities, the bills are not always borne by the owner. The tenant may be responsible for paying the bills, depending on the agreement in the rental contract.
Additionally, other costs that could be charged to tenants include taxes, insurance costs, and building maintenance.
Ask the owner or landlord about any costs typically incurred each month. Calculate the details so you can set a monthly budget.
Also, ask if the company renting the office space regulates additional costs such as property damage, internet, water, electricity bills, or office maintenance, such as cleaners and technicians. Find out if these are included in the rental agreement.
8. Use a property agent
As an expat with no experience renting shops or office spaces, it is a good idea to use the services of a property agent to make things easier. They have the connections and information to help you find a suitable building.
Renting a shop and office space is not an easy task. It takes patience and foresight to find the right building for your business.
Find the best & available shop and office space to rent in Indonesia with Lets Move Group
One of the real estate agents for expats is Lets Move Group. Lets Move Group is not only one of the largest real estate agencies in Indonesia but also the most comprehensive. They are a recommended agency for property and focus on expats. They also offer a more complete service and a larger selection of properties in Jakarta and Bali.
