The industrial land market maintained positive growth in 2024, driven by strategic sectors. Chairman of the Indonesian Industrial Estate Association (HKI), Sanny Iskandar, stated that demand for industrial land has remained stable throughout the year, supported by expansions in key industries such as manufacturing, logistics, and data centers. He highlighted that industrial estates located near key infrastructure such as seaports, airports, and highways continue to attract significant investor interest. Among these, the data center sector played a pivotal role, fueled by increasing digitalization and the rising need for data storage. "This trend aligns with government policies on digital transformation and the rapid growth of cloud computing and e-commerce services," Sanny explained. Additionally, the sector's expansion is bolstered by foreign investments and strong domestic demand, although challenges such as stable electricity supply and adequate water resources for cooling systems persist.
Despite the positive trajectory, industrial land developers face challenges related to global economic dynamics, geopolitical risks, and domestic regulatory uncertainties. Looking ahead to 2025, potential obstacles include fluctuating commodity prices, inflation, and rising global interest rates, which could dampen investor sentiment. Geopolitical tensions may also disrupt supply chains and trade routes. Sanny further emphasized that government policies, particularly those affecting trade regulations, environmental permits (Amdal), and labor laws, play a critical role in shaping investor confidence. The annulment of several provisions in the Omnibus Law on Job Creation and fiscal policy implementation issues have also raised concerns. Nonetheless, the growth of industrial estates will likely be supported by advancements in infrastructure, including toll roads, power plants, water reservoirs, gas supply networks, digital infrastructure, and ports. Beyond data centers, sectors such as electric vehicles, pharmaceuticals, food and beverages, consumer goods, and logistics are expected to drive industrial land sales in the coming year.
Source: https://industri.kontan.co.id/news/penjualan-lahan-industri-tumbuh-positif-sepanjang-tahun-2024
