2023-10-03-莱坊-Jakarta_Industrial_Market_Overview_H1_2023_2页_102kb

Greater Jakarta Industrial Market Summary (1H 2023)

Core Content Overview

This report provides a bi-yearly analysis of the industrial market in the Greater Jakarta region, focusing on land sales trends, demand drivers, and market dynamics across major industrial estates in Jakarta, Bogor, Depok, Tangerang, Bekasi, and Karawang.

Key Market Trends

• Land Supply: The cumulative total supply of industrial land in the Greater Jakarta area remained unchanged at 14,259 hectares in the first half of 2023, with no new land banks added.
• Land Distribution:
  • Bekasi and Karawang accounted for 70% of the existing industrial land supply, making them the dominant regions in terms of land availability.
  • Bogor had the smallest share, at only 1%.
• Land Sales Activity:
  • Industrial land sales in the first half of 2023 totaled 66 hectares, representing 32% of the previous year's absorption.
  • Bekasi was the top contributor, absorbing 42.8 hectares or 65.8% of the total land sales in the region.
• Demand Drivers:
  • Manufacturing, Automotive-related, and Data Center industries were the main contributors to land sales.
  • Manufacturing and Automotive sectors were identified as the major demand drivers for the first half of 2023.
  • Data Center accounted for 14% of land transactions, with most activity concentrated in Bekasi.
  • Other significant sectors included Electronics and FMCG.

Land Price and Cost Trends

• Asking Land Prices:
  • The average asking land price remained relatively stable, with a negligible increase of 0.1% from the previous period.
  • The price stood at Rp3.6 million per hectare.
• Industrial Maintenance Costs:
  • Service charges for industrial properties showed a minor annual increase of 0.4%, reaching Rp1,121 per square meter per month.

Industry Outlook

• FDI Impact:
  • The industrial market is expected to maintain a balanced land sales volume and stable land prices, supported by steady Foreign Direct Investment (FDI) inflows, especially in the manufacturing sector.
• Sector Transformation:
  • With rising minimum wages and land prices, there is a gradual shift towards capital-intensive and high-tech industries in Greater Jakarta.
  • Labor-intensive industries are showing a trend to relocate to areas with lower labor costs and affordable land prices, such as Central Java and parts of West Java.

Major Foreign Buyers

• The top foreign buyers in the industrial land market were multinational companies from China, Taiwan, Malaysia, Japan, South Korea, and the United States.

Conclusion

The Greater Jakarta industrial market remains resilient despite a slowdown in land absorption during the first half of 2023. The manufacturing and automotive sectors continue to drive demand, while data centers and high-tech industries are emerging as key growth areas. The Bekasi-Karawang region remains the largest supplier of industrial land, and the market is expected to remain stable in the coming period due to FDI inflows and ongoing sectoral transformation.