Where will Indonesia’s new industrial land supply come from? | Real Estate Asia
, Indonesia

Where will Indonesia’s new industrial land supply come from?

Newly developed regions will be the primary source.

Several regions accelerated the development of raw properties into ready-to-build land in 2022, according to a recent Colliers report. Analysts recorded a total of 74 hectares of land prepared in 2022 in the eastern part of Greater Jakarta, which includes Bekasi and Karawang.

Meanwhile, in the western region, particularly in Serang, two industrial estates are still developing 300 hectares of land into ready-to-build areas. This began in 2022 and is still ongoing. In the south, as Bogor is no longer being developed as an industrial area, development is now focusing in Sukabumi. Sukabumi's new Cikembar Industrial Estate is still in the planning stages.

Here’s more from Colliers:

Across the western, eastern, and southern regions of Greater Jakarta, there are multiple proposals to establish new industrial estates. Noteworthy development initiatives are taking place in the west, around Serang, as well as in the east, specifically in Karawang and Subang, along with Sukabumi in the south.

Although the overall industrial market is projected to experience an increase in land supply in the future, this will likely only occur once the economy gains momentum and the effects of the Covid pandemic are contained. Construction endeavours to transform undeveloped land into operational plots are still progressing in emerging industrial areas.

Moreover, new industrial estates are currently in the process of establishing the necessary infrastructure within their premises, and we anticipate that these efforts will materialise in the near future.

Bekasi, which is in high demand for industrial sites, is facing a shortage of available land, leading to a shift in expansion sites to nearby areas close to the future port in the Patimban region of Subang. Subang itself is experiencing rapid development, with the launch of two industrial estates: Taifa Industrial Estate (94 hectares) and Subang Smartpolitan, developed by Suryacipta Swadaya, the same company that developed KI Suryacipta in Karawang.

Additionally, Subang is witnessing the development of two more industrial estates, namely Grand Rebana Industrial Estate and Patimban Industrial Estate. The establishment of the new Patimban Port has spurred the growth of the region, positioning it as an emerging industrial centre.

Notably, Purwakarta has also introduced a new area called Jatiluhur Industrial Smart City, covering a vast area of 1,200 hectares. Developed by Wings Group, this area will complement existing industrial activities supported by various operational zones.

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