Chinese companies' demand for Indonesian warehousing grows significantly

]In the second quarter of 2025, Indonesia's foreign direct investment (FDI) contracted by 12.81 TP3T year-on-year, but the modern warehousing industry in Jakarta and surrounding areas (Jabodetabek) was positively impacted by foreign investment, with the utilization rate in the first half of 2025 rising from 891 TP3T to 941 TP3T.With no new warehouses to be built in 2025, investors (especially in the Jikarang and Karawang regions) are actively looking for warehousing locations, with warehousing supply increasing from 1.3 million square meters in 2018 to 3.0 million square meters by the end of June 2025, a near tripling of growth. A large number of Chinese companies have inquired about warehouse leasing in Indonesia, preferring to rent multi-purpose warehouses that can be used as small-scale production workshops to test the potential of the Indonesian market at a low cost and for a short period of time (lease period of 1-10 years), and may consider purchasing land after validating the market. Chinese companies have significant leasing demand, for example, JLL Indonesia has Chinese customers leasing 70,000 square meters of warehouses at one time, mainly focusing on the automotive (including electric vehicles and parts), textile, electronics and home appliances, food and beverage, etc., in which BYD's (BYD) suppliers and partners to follow its layout in Indonesia. pt Astra International Tbk ( ASII, through its subsidiary PT Saka Industrial Arjaya, acquired PT Mega Manunggal Property Tbk (MMLP) with the aim of "developing SIA's investment business"; MMLP is a specialist warehouse developer whose clients include Unilever, MMLP is a specialist warehouse developer with clients such as Unilever and Lazada,DHLUnlike industrial park developers that only provide land, private logistics developers, such as Yamaha, focus on building and leasing warehouses, which is in line with the trend of foreign leasing demand. Modern warehousing use is dominated by the automotive industry, and foreign leasing demand is driving the industry's growth, a trend that private logistics developers have noticed and are adjusting their operations.