Indonesia’s warehouse and logistics real estate sector is experiencing a development boom, with ProSpace Indonesia’s Logistics Property Report identifying 1.2 million square meters of new warehouse space delivered in 2024, a 68% increase from the previous year. Occupancy rates remain high at 93% despite significant new supply.
E-commerce fulfillment requirements drive much of the demand, with online retail operators and third-party logistics providers accounting for 57% of new leasing activity. Meanwhile, manufacturing companies upgrading their distribution networks represent another significant demand source.
“The logistics property sector has emerged as one of Indonesia’s most dynamic real estate segments, with structural growth drivers creating sustained demand,” notes Budi Santoso, Logistics Property Analyst at ProSpace. “The development of modern facilities is enabling more sophisticated supply chain operations previously difficult to implement in Indonesia.”
Greater Jakarta dominates the market with 68% of total warehouse stock, though secondary logistics hubs in Surabaya, Medan, Makassar, and Balikpapan show accelerating development. Cold chain facilities represent the fastest-growing specialized segment, expanding by 87% in two years to support food delivery and pharmaceutical distribution.
Automation technologies are increasingly incorporated into new developments, with approximately 35% of facilities now featuring semi-automated or fully automated systems. Meanwhile, sustainability features including solar panels, energy-efficient designs, and rainwater harvesting systems become standard in premium developments.
Land prices for logistics purposes have increased by an average of 18% annually in prime locations, reflecting strong demand and limited availability of well-connected industrial land with proper zoning.
For logistics property market information: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates