Indonesia’s industrial real estate sector is experiencing unprecedented growth, with ProSpace Indonesia’s Industrial Property Report identifying 780 hectares of new industrial land developed in 2024, a 47% increase from the previous year. Total industrial estate occupancy rates have reached 87%, up from 79% in 2023.
Foreign direct investment drives much of the demand, with manufacturers from China, South Korea, Japan, and the United States establishing or expanding Indonesian production facilities. Meanwhile, domestic manufacturers increasingly consolidate operations in modern industrial parks offering reliable infrastructure and operational efficiencies.
“Global supply chain reconfiguration and Indonesia’s improving competitiveness are creating ideal conditions for industrial estate development,” notes Adi Prasetyo, Industrial Property Specialist at ProSpace. “The government’s focus on investment-ready infrastructure has been particularly effective in attracting manufacturers.”
Geographic diversification continues with significant development in Central Java, East Java, North Sumatra, and South Sulawesi, though the Jakarta-Bekasi-Karawang corridor remains the primary industrial concentration. Specialized industrial clusters are emerging, with automotive, electronics, food processing, and pharmaceuticals forming distinct ecosystems.
Green industrial estates incorporating renewable energy, water recycling, and sustainable building practices represent a growing segment, accounting for 38% of new development. Meanwhile, smart industrial parks with integrated digital infrastructure command premium rates while improving operational efficiency.
Land prices in prime industrial areas have increased by an average of 12.3% annually over the past three years, reflecting strong demand and limited availability of fully-serviced industrial land.
For industrial real estate information: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates