Facility Management is a service in managing a building or a facility with professional discipline that focuses on delivering effective support services for the functionality, safety, and sustainability of buildings. Indonesian FM is fulfilling the needs of top-class buildings and facilities by offering, energy management, security, safety solutions, and integration of smart technologies. Thus, the adoption of facility management in Indonesia has grown significantly in recent years. FMs include several operations such as lease management, maintenance & operations, occupancy & space management, and business continuity, etc.,
The growth cycle of Indonesia facility management is, the changing economic status progress the numerous multinational companies. Further, multinational companies propel the demand for commercial office buildings and industrial plants. Thus, overall business organizations and enterprises outsource the operations and management of integrated FM. Hence, the service providers offer efficient service delivery and aid in the operation costs and time of the organizations and enterprises. Consequently, all these factors supported the underlying growth of the industry. In fact, according to a recent report analysis by MarkNtel Advisors, the Indonesia Facility Management Market is projected to grow at a CAGR of around 9.60% during 2022-27.
Why Facility Management in Indonesia is in Nascent Stage?
The FM industry is in a relatively emerging stage due to end-user preferences for single and bundled services. The enterprises in Indonesia intended to fulfill their services through internal labor for soft services and contacting original equipment manufacturers for hard services. The hard services involve electromechanical and maintenance, and fire safety systems whereas soft services involve security, landscaping, ground maintenance, and waste management.
Thus, hard services are in heightened demand due to the construction activities coupled with physical assets such as wiring, plumbing, elevators, lighting, heating, and overall building maintenance. Thus, multinational companies in Indonesia lack awareness of integrated facility management systems alarmed by the price sensibility of hard services. Therefore, they are usually preferring for single or bundled services which results in low penetration of FMs in Indonesia.
Expanding Facility Management: Forthcoming Robust Strategies
However, there are some multinational companies outsourcing facility management specifically in industry construction, and residential space wherein catering to the demand of the clients for both hard and soft service. As a result, the FMs in Indonesia offered a comprehensive range of services in the construction sector integrated with the latest technologies. Some of them are,
- Some of the world-leading companies such as Google, Microsoft, Oracle, Nielsen, Amazon, and IBM have set up their offices in the country. Further, 90 percent of the jobs in the country are accredited to the private sector. Thus, the facility management is implementing effective maintenance and inspection systems that are essential for the safety, and reliability of the facilities and buildings.
- The government has taken numerous initiatives and allocated massive funds for construction activities. For instance, the government of Indonesia is constructing a new capital city that covers around 56, 180 hectares in East Kalimantan province. Thus, the FMs in Indonesia benefitted due to the fast-growing infrastructure developmental agenda.
- Facility management in Indonesia follows a systemic process to provide structural, architectural, and operational changes in facilities and buildings to minimize the negative impacts on the environment. Thus, increasing sustainable infrastructures reduce resource depletion with responsible contact with the environment, in turn accelerating the facility management industry.
- Prevalence of Corporate Real Estate (CRE) companies are adopting the digitization of operations that ensures effective administrative services by approaching the integrated facility management systems in Indonesia. Further, these companies are coming up with a well-structured plan for deploying the latest technologies and analytics with a cyber-security system for expected results.
Future Outlook,
In the future, Indonesia FM is expected to shift from single bundled to integrated facility management services due to increasing infrastructure and MNCs. Therefore, the growth in Industrial, residential, and commercial sectors adopt effective FMs for their hard and soft services. Besides, the government initiatives in the transportation, and energy sectors augment the specialized service of FMs.
Thus, facility managers are building robust strategies revolving around the challenges of the FMs landscape that will cater to the heightening demand in Indonesia over the long term.
