Valuation revaluation driven by large conglomerates' long-term strategic layout of industrial parks

The professor of Finance and Capital Markets said that the entry of large Indonesian conglomerates into the industrial park sector is a long-term strategy that could be a positive catalyst rather than a speculative project.The corporate move stems from the good prospects of industrial parks, such as the possibility of becoming a future large port hub (take the area managed by PT Surya Semesta Internusa Tbk (SSIA) as an example). This phenomenon may have a positive impact on the prices of other industrial park stocks and drive other real estate stocks. The entry of large players validates the attractiveness of the industrial park sector driven by infrastructure development, manufacturing growth, downstream industry development, foreign investment inflows and government incentives such as special economic zones. These companies have a proven track record and are not speculative investors, so industrial park projects are not short-term and have strong integration with their core business. A number of Indonesian conglomerates have recently made more corporate moves in the industrial park sector, including purchasing land, projects and entering the sector by taking a controlling stake in the shares of industrial park companies, triggering speculation about their medium- and long-term valuation prospects.