In the second quarter of 2025, Indonesia's foreign direct investment (FDI) contracted 12.8% year-on-year, but the modern warehousing sector in Greater Jakarta (Jabodetabek) was positively influenced by foreign investment, with utilization rates rising from 89% to 94% in the first half of 2025. No new warehouses were built in 2025, and investors (especially in Cikarang and Karawang) are actively searching for warehousing locations. Warehouse supply has nearly tripled from 1.3 million square meters in 2018 to 3 million square meters by end of June 2025. Many Chinese companies are inquiring about warehouse leasing in Indonesia, preferring multifunctional warehouses that can also serve as small production workshops to test the Indonesian market potential at low cost and short time (lease terms of 1-10 years), with possible land purchase after market validation. Chinese enterprises show significant leasing demand—for example, JLL Indonesia had a Chinese client leasing 70,000 square meters of warehouse space at once. Key sectors include automotive (including electric vehicles and components), textiles, electronics and home appliances, food and beverages, with suppliers and partners of BYD following its presence in Indonesia. PT Astra International Tbk (ASII) acquired PT Mega Manunggal Property Tbk (MMLP) through its subsidiary PT Saka Industrial Arjaya, aiming to "develop SIA's investment business." MMLP is a specialized warehouse developer serving clients such as Unilever, Lazada, DHL, and Yamaha. Unlike industrial park developers that only provide land, MMLP focuses on warehouse construction and leasing, aligning with the trend of foreign leasing demand. Modern warehousing usage is dominated by the automotive industry, with foreign leasing demand driving sector growth. Private logistics developers have noticed this trend and adjusted their strategies accordingly.
In the second quarter of 2025, Indonesia's foreign direct investment (FDI) contracted 12.8% year-on-year, but the modern warehousing sector in Greater Jakarta (Jabodetabek) was positively influenced by foreign investment, with utilization rates rising from 89% to 94% in the first half of 2025. No new warehouses were built in 2025, and investors (especially in Cikarang and Karawang) are actively searching for warehousing locations. Warehouse supply has nearly tripled from 1.3 million square meters in 2018 to 3 million square meters by end of June 2025. Many Chinese companies are inquiring about warehouse leasing in Indonesia, preferring multifunctional warehouses that can also serve as small production workshops to test the Indonesian market potential at low cost and short time (lease terms of 1-10 years), with possible land purchase after market validation. Chinese enterprises show significant leasing demand—for example, JLL Indonesia had a Chinese client leasing 70,000 square meters of warehouse space at once. Key sectors include automotive (including electric vehicles and components), textiles, electronics and home appliances, food and beverages, with suppliers and partners of BYD following its presence in Indonesia. PT Astra International Tbk (ASII) acquired PT Mega Manunggal Property Tbk (MMLP) through its subsidiary PT Saka Industrial Arjaya, aiming to "develop SIA's investment business." MMLP is a specialized warehouse developer serving clients such as Unilever, Lazada, DHL, and Yamaha. Unlike industrial park developers that only provide land, MMLP focuses on warehouse construction and leasing, aligning with the trend of foreign leasing demand. Modern warehousing usage is dominated by the automotive industry, with foreign leasing demand driving sector growth. Private logistics developers have noticed this trend and adjusted their strategies accordingly.