Changes in the wind

All eyes are on two upcoming convention and exhibition venues which are expected to remedy Jakarta’s current lack of event space

The opening of two new convention and exhibition centres in Tangerang’s BSD City and Alam Sutra, close to Jakarta, is expected to boost the performance of the Indonesian capital’s association events sector.

First of the two upcoming infrastructure is the Indonesia Convention Exhibition (ICE) centre, which is due to open by early 2015. It is operated by Indonesia International Expo (IIE), Media Sinar Global (MSG) and Hannover Fairs International, a subsidiary of Deutsche Messe.

Jakarta’s city centre may be the commercial nerve centre of the country, but traffic jams, seasonal floods and a lack of convention space is hurting growth potential for business events

ICE, currently under construction in BSD City on the outskirt of Jakarta, will be the biggest convention and exhibition centre in Indonesia, spanning 50,000m2 in indoor space, 50,000m2 in outdoor space, and 33 meeting rooms that can accommodate up to 10,000 people.

Danny Budiharto, president director of IIE, which also owns and operates three other venues in Indonesia, said that the growth of MICE and economic stability in Indonesia is drawing many convention and exhibition operators to the country, who will in turn bring in international shows, in addition to local exhibitions and conventions.

“Jakarta needs more convention and exhibition space to cater for these shows as the existing Jakarta Convention Centre and Jakarta International Expo are already very packed with events,” he said.

Over in Alam Sutera, a 30-minute drive from Soekarno–Hatta International Airport, work is underway for the Jakarta International Congress and Convention Centre. The venue is expected to open in 2016, adding 60,000m2 of exhibition space, a 6,000m2 ballroom and 66 meeting rooms to Jakarta’s stable of business event hardware.

Indra Sukirno, director executive of Jakarta Convention and Exhibition Bureau (JCNEB), also acknowledges that the city’s existing event facilities are stretched. She revealed that Jakarta Convention Centre “is busy year-round” and it is “hard” for event planners to secure a space in the venue. The Jakarta International Expo faces the same space constraints, and is presently expanding its facilities to better cope with rising market demand.

Indra added that traffic congestions in the city centre pose yet another problem for Jakarta’s business events sector.

Fortunately, the two new venues are placed outside of the bustling city centre and have direct access from the airport. Tangerang, where they are located, has a growing middle- and upper-class satellite city, where numerous new hotels, shopping malls, F&B facilities, hospitals and universities have emerged over the last five years.

“Event participants do not need to enter the city centre and can therefore avoid the traffic,” Indra said.

Rizki Handayani, director of MICE and Special Interest Tourism Promotion, believes that both the ICE and Jakarta International Congress and Convention Centre will “improve the positioning of the city for association meetings”.

According to Indra, Jakarta is already seeing stronger interest from associations.
“This year alone we have supported two site inspections for association events planned for 2016. We have also just (secured) a medical association conference,” she shared.

To ensure the interest remains high, the Ministry of Tourism and Creative Economy has partnered JCNEB in hosting a gathering with business event players in Paris and Brussels, held in conjunction with IMEX Frankfurt 2014 to promote Jakarta as a destination.
Indra said: “Our plan next year is to bring (local) industry (suppliers) along to (these gatherings).”

While ICE and Jakarta International Congress and Convention Centre may satisfy event planners hoping to escape Jakarta’s notorious traffic jams, Susilowani Daud, president director of Pacto Convex, feels that the capital city still pales in comparison to sister destination Bali when it comes to available attractions.

“Congress delegates usually bring their spouses and families with them, and Bali has everything, from beaches, nightlife, culture and arts. Jakarta does not have these things to offer,” Susilowani lamented.
However, Rizki begged to differ, saying: “Jakarta, as the capital of Indonesia, has accommodation, venues and good (international air) accessibility. It has plenty of entertainment, nightlife, golf courses and shopping complexes. With these elements combined, Jakarta has the potential to become a destination for association congresses.”