Chinese tenants drive industrial real estate growth in Indonesia

social dynamics3hrs agoupdate PrintEnterprise

0 0

2025 PT Modernland Realty Tbk (MDLN) has bucked the trend of explosive growth amidst global macroeconomic uncertainty, with its annual public presentation revealing that the industrial real estate segment has become a core driver of performance and clarifying the strategic direction of focusing on sustainable development and corporate governance in the future.Although Indonesia's GDP growth stabilized at 5.04% year-on-year in Q3 2025 and the real estate sector is still under pressure, MDLN has managed to turn around: revenues of Rp70.343bn and operating profit of Rp73.161bn in the year to date for the third quarter soared by 834.13% year-on-year, while the net profit of Rp44.46bn was a net loss of Rp16.598bn compared to the same period of the previous year Significant improvement.

The industrial real estate sector was particularly strong, with Modern Cikande Industrial Park as the main engine, with net sales of Rp 57.5 billion in the third quarter, surging by 6,29% YoY. Strong demand came from the machinery and equipment (38%), textile and apparel (21%) and pharmaceuticals (17%) sectors, and the majority of the tenants came from China, with more than 300 active tenants in the park, with food processing occupying the largest area, followed by chemicals and steel processing. Food processing occupies the largest area, followed by chemicals and steel processing.

It is currently developing the 840-hectare Phase VII Smart Eco-Industrial Park and planning for the 1,000-hectare Phase VIII focusing on high-tech, halal industries and regional logistics centers, including exploring logistics sites in East Jakarta. Marketing sales in the residential and commercial segment amounted to Rp1.32 trillion, a slight decline of 6% year-on-year to Rp61 billion, but a strong increase of 93% quarter-on-quarter.

The main projects are Jakarta Garden City, Kota Modern and Modernland Cilejit. 2025 saw the launch of two new mid-to-high-end products, Kota Modern Waterfront Residence Alder and the Florence Village cluster in Jakarta Garden City, with the first phase of over 120 units sold. Over 120 units were sold in the first phase, consolidating the mid-to-high-end market.

# Social Dynamics