The Indonesian Industrial Estate Association (HKI) projects that the data center and electric vehicle (EV) sectors will lead in occupying industrial areas across Indonesia in 2024. HKI Chairman Sanny Iskandar stated that demand for industrial land for data centers has surged throughout 2024, driven by the rising need for digitalization and data storage. "This growth aligns with the expansion of digitalization and the increasing need for data storage. Industrial zones see significant opportunities from the expansion of both local and international tech companies," Sanny told Kontan.co.id on Monday, October 21. In response to this potential, industrial estate owners are preparing infrastructure to support the data center sector, a trend that is expected to continue as the digital economy in Indonesia grows.
In addition to data centers, HKI predicts a rapid growth in the electric vehicle sector by 2025. The EV ecosystem, including battery production and supporting components, will positively impact industrial areas, particularly those focused on automotive and renewable energy. Sanny also noted that other sectors, such as medical equipment and pharmaceuticals, are expected to grow. With substantial prospects, he hopes that the new government will support pro-investment policies, including incentives for investors operating in industrial zones, to ensure continued industrial growth. "From HKI's perspective, the ongoing downstreaming in the mining sector and the shift toward high-tech industries will further drive demand for industrial estates in various regions," Sanny concluded.
