2022-10-12-莱坊-Industrial_Market_Overview_H1_2022_2页_390kb

The Greater Jakarta industrial market showed strong recovery in the first half of 2022 (H1 2022), following slowdowns in 2020 and a recovery in 2021. Land sales volumes increased significantly, with 134 hectares sold, a 59% year-over-year rise compared to 226 hectares in H1 2021. Key drivers were the Data Center and Chemicals sectors, contributing approximately 40% and 26% of transactions, respectively. The markets were bolstered by lifted restrictions and reopened borders, resuming international demand and expansion plans, particularly from multinational corporations in China, Japan, South Korea, and the United States.

Geographically, Bekasi and Karawang dominated supply, accounting for 72% of existing industrial land, while Bogor had the smallest share at 1%. Cumulative supply rose by 4.3% yoy to 13,733 hectares. The manufacturing sector remains a primary economic driver, supporting exports. Land prices were stable, with a minor 0.4% yoy increase to Rp3.3 million per hectare, and maintenance costs stayed steady at Rp1,116 per m² per month.

Future outlook is positive, with potential for higher sales volumes due to growing demand in data centers and logistics/warehousing, supported by digital economy expansion and supply chain needs. However, challenges include lingering pandemic effects, inflation risks from rising food and energy prices, and pressure on labor-intensive industries to relocate to regions with lower costs. Overall market absorption may exceed pre-pandemic levels, but uncertainties persist.