What happened
Serviced apartments in Jakarta, the fully furnished units that come with hotel-style services, were 61% occupied in the third quarter of 2026. That is 1.6% higher than in the second quarter. Colliers Indonesia released the figures at its virtual media briefing on October 7, 2026.
The main reason is the slide in the rupiah. For foreign tenants whose budgets are set in dollars, renting in Indonesia has become cheaper.
The segment is small but telling. Serviced apartments are rented mostly by foreign professionals, staff of international companies and guests staying for weeks or months. Their occupancy therefore reacts quickly to anything that changes an expatriate's budget, and the exchange rate comes first.
The numbers
Average rent stayed flat at Rp 457,000 per square meter per month. Operators did not cut prices even as the exchange rate moved in tenants' favor.
On Monday, October 5, the US dollar climbed past Rp 17,900. Bank Indonesia, the central bank, puts the rupiah's year-to-date depreciation at 7.74%. The move is broadly in step with other currencies in the region.
Notably, higher occupancy did not come with lower prices. In weak markets operators usually compete on discounts. Here demand edged up while rates held, so operators earned more through fuller buildings rather than higher tariffs.
The analyst view
Ferry Salanto, head of research at Colliers Indonesia, describes a simple mechanism. Many expatriates receive a housing allowance in US dollars. As the rupiah weakens, that same allowance converts into more local currency.
He says some tenants are using the gain to upgrade to larger units or a higher category rather than negotiating rent down. He credits two factors for the segment's resilience: stronger expatriate purchasing power and a limited pipeline of new supply. Competition among operators is contained, and they have held their rates.
A temporary tailwind
Salanto stresses that this will not last forever. He advises operators to protect their base of corporate clients and guests on extended stays.
Put simply, the currency advantage only works while the rupiah stays weak. If it recovers, demand will have to rest on underlying fundamentals.
For investors this is a familiar trap. A strong quarter is easy to mistake for a new normal and write into a business plan. When the cause is external and temporary, that plan overstates income for years ahead.
Not just a Jakarta story
The rupiah has one exchange rate nationwide. If it changes tenant behavior in the capital, it also reaches resort markets where guests pay in foreign currency. The difference is that Jakarta's demand is corporate, while Bali's is mostly leisure and long-stay, driven by remote workers and families.
What it means for Bali
The same logic applies on the island. Foreign guests and long-stay villa tenants typically pay in foreign currency or plan in dollars. A softer rupiah makes holidays and long-term rentals in Bali cheaper for them, which supports demand.
There is a flip side for owners. If rental income is collected in rupiah but the return is measured in dollars, depreciation shrinks the result. Many running costs of a villa are also in rupiah, so it pays to know which currency each item is fixed in.
Jakarta offers one more lesson. Operators held rates and guests traded up. For Bali properties, that is an argument against discounting while the rupiah is weak.