Indonesian corporate giants frequently venture into real estate and logistics

Indonesia's two largest conglomerates, Grup Djarum and Grup Astra, have been making more frequent acquisitions in the real estate and logistics sectors, a move that is seen as a strong signal of their confidence in the country's long-term economic recovery prospects.Astra International, through its subsidiary PT Saka Industrial Arjaya (SIA), has formally acquired a majority shareholding in PT Mega Manunggal Property (MMLP).SIA will acquire approximately 83.67% of MMLP's shares, and upon completion of the transaction SIA will become the new controlling party of MMLP, and Astra is required to make a mandatory tender offer to the public as required. The acquisition is part of SIA's long-term business development and investment strategy and is part of the expansion of its business portfolio in the real estate and logistics sectors.Djarum's investment vehicle, PT Dwimuria Investama Andalan, which has a shareholding of 6.56% (308.73 million shares) in SSIA, has been present since July 4, 2025 SSIA's list of shareholders holding more than 5% and continues to increase its holdings. The company also holds 8.32% in PT Sarana Menara Nusantara (TOWR) and acquired all the repurchased shares of PT Medikaloka Hermina (HEAL) outside the Indonesian Stock Exchange on June 25, 2025.PT Chandra Asri Pacific (TPIA ) owns 5.60% of SSIA (approximately 263.41 million shares) through the CAP Fund.TPIA had held over 5% of SSIA in March 2025, then disappeared from the list and reappeared in mid-July 2025, stating that the move was part of a portfolio strategy and was not for the purpose of taking direct control of SSIA.Market analysts noted that the retail sector was more affected by market pressures, with the IDX Consumer Cyclical Index contracting by 15.72% and a decline in consumer purchasing power, while indicators such as PMI data and inflation also pointed to weak demand from the population, and the logistics sector was also hit harder by the weak economy. However, he believes that against this backdrop, acquisition moves by large corporations are strategic, similar to what happened when the hotel industry struggled during the New Crown epidemic when it was acquired by other groups, and that this acquisition of SSIA and MMLP shows that these groups are optimistic about the potential for the recovery of Indonesia's economy, although this recovery is long term and not something that can be realized in the short term.