The industrial property market showed strong growth in the first quarter of 2025, fueled by strategic developments in Indonesia's key industrial areas. New land is being opened, modern warehouses are expanding, and sectors such as data centers and automotive are drawing increasing investor interest. In Purwakarta, a 46-hectare new industrial zone was launched, marking a shift as land in Bekasi and Karawang becomes scarcer. As the industrial focus gradually shifts eastward, this opens new opportunities but also presents challenges in ensuring adequate supporting infrastructure.
The logistics sector is also thriving, with 99,335 square meters of new warehouse space added in Karawang, which is now nearing the warehouse supply levels of Bekasi and Tangerang, long considered the logistics hubs of Jabodetabek. Market activity is reflected in the increased volume of industrial land transactions, with 97.70 hectares changing hands in Q1 2025, a 61.8% rise compared to the previous quarter and a 51.7% increase year-over-year. The automotive and data center sectors are key drivers of this growth, while moderate price increases in industrial land and stable warehouse rents indicate a healthy market with sustainable growth potential.
