The year 2024 marks the best achievement in the past five years for industrial areas in Jabodetabek and its surroundings, with land absorption reaching approximately 313 hectares. According to Willson Kalip, Country Head of Knight Frank Indonesia, this figure is the highest since the pandemic. The relocation of manufacturing from countries such as China, Vietnam, and South Korea to Indonesia, primarily due to the trade war between the United States and China, has been a major factor in this increase. Therefore, the government and industry players need to seize this momentum as a golden opportunity to sustain industrial sector growth, both in the Jabodetabek area and nationally.

Currently, Jabodetabek and Subang are the most promising industrial growth hubs, particularly with the expansion of the automotive sector focused on electric vehicle (EV) production and its supporting industries. Meanwhile, the data center sector, which had been actively absorbing industrial land since 2021, experienced a decline in demand by the end of 2024. Nevertheless, the overall industrial sub-sector has shown its best performance since the pandemic, reflecting the resurgence of the manufacturing industry in Indonesia.

With increasing demand, several industrial areas in Jabodetabek plan to add land supply to meet the needs of industrial players. Subang is also following suit in this expansion effort, given the high interest in industrial land in the area. This growth reflects optimism about the increasingly promising prospects of the industrial sector in Indonesia.

Source: Kompas.com