Reasons for Positive Industrial Land Transactions in Jakarta Metropolitan Area

Industrial land sales in Jabodetabek, Greater Jakarta Metropolitan Area experienced a very high growth in the second quarter of 2024, with industrial land sales transactions amounting to 182.9 hectares, which is an increase of 1,84% compared to the previous quarter, and the area of industrial land offered for sale in the first quarter of 2024 was approximately 64.41 hectares.The total number of land transactions recorded up to the first half of 2024 amounted to 247 hectares and is expected to continue to increase by the end of the year.The Director of Strategic Consulting at DTZ Indonesia revealed that this is due to the active demand, especially the number of foreign companies that want to build factories in Indonesia. The most valued sector for industrial land in Indonesia is the automotive sector, especially electric vehicles. As a result Q2 2024 saw a significant increase in demand for industrial land, and if one looks more closely, this came from the automotive sector related to electric vehicles, which dominated the sales of approximately 70% of land transactions in the first half of 2024. The community can see that there is still significant active demand, especially from foreign companies planning to set up factories in Indonesia.

On the other hand, he revealed that there will be no new supply of industrial land in the second quarter of 2024. He expects industrial land in Jabodetabek to increase to 150 hectares by the end of this year.It is true that there will be no new supply in the second quarter of 2024, in fact it will still come from as much as 60 hectares in the first quarter of 2024, and that supply is expected to continue to grow to about 150 hectares by the end of 2024. This year they estimate that this will come from the Eastern Corridor industrial zones, be it Bekasi, Karawang or Subang. Some foreign investors will be looking for industrial land in Jabodetabek, such as in the automotive, e-commerce, logistics and data center sectors. The business is still related to electric cars and then there are e-commerce, data centers and some logistics companies that are still quite active in looking for industrial land in the area.