rnrnDriven by the "China Plus One" global layout strategy, a large number of Chinese enterprises seek to establish overseas production and operation bases. Southeast Asia has become a core deployment region. The head of JLL Indonesia pointed out that Indonesia has great potential to host Chinese enterprises' overseas expansion, which will continue to drive demand for local commercial real estate such as industrial land, logistics warehouses, and office spaces. JLL released the latest research report "Thriving Outward: Global Real Estate Strategies for Chinese Enterprises", showing that 97% of Chinese enterprises list overseas expansion as a core business strategy. However, they commonly encounter various difficulties in overseas implementation.rnrn82% of enterprises face unexpected obstacles during the site selection stage, nearly two-thirds of projects experience schedule delays, over half exceed budgets, and nearly one-third of enterprises have to compromise on sites with poor location conditions just to start production as soon as possible. The Co-CEO of JLL Greater China stated that commercial real estate management has become a key element for Chinese enterprises to enhance global competitiveness. Real estate-related decisions such as site selection planning, asset operation and maintenance, office layout, and cross-border coordination directly determine the success or failure of enterprises' overseas expansion. The Research Head for China added that the biggest weakness for Chinese enterprises going overseas is unfamiliarity with the rules of target countries' real estate markets, leaving them constrained in site selection, compliance interpretation, and negotiations with local landlords.rnrnTo address these pain points, approximately three-quarters of surveyed Chinese enterprises plan to establish standardized overseas site selection processes, and nearly half of the enterprises intend to hire professional real estate consulting firms to provide full-process services in the next two years. The complexity of cross-border operations continues to increase. Enterprises cannot guarantee expansion success by relying solely on market opportunities; they must rely on local professional partners and thoroughly understand local market dynamics to make long-term, sound investment decisions. Facing the sustained growth of Chinese enterprises' willingness to deploy in Indonesia, the local market needs to improve the supporting investment ecosystem and continuously supply industrial parks, logistics facilities, and office spaces suitable for foreign capital needs, matching the long-term production and operation demands of Chinese enterprises and seizing the China Plus One industrial relocation dividend.
Indonesian Commercial Real Estate Sees Long-Term Incremental Demand from Chinese Enterprises
rnrnDriven by the "China Plus One" global layout strategy, a large number of Chinese enterprises seek to establish overseas production and operation bases. Southeast Asia has become a core deployment region. The head of JLL Indonesia pointed out that Indonesia has great potential to host Chinese enterprises' overseas expansion, which will continue to drive demand for local commercial real estate such as industrial land, logistics warehouses, and office spaces. JLL released the latest research report "Thriving Outward: Global Real Estate Strategies for Chinese Enterprises", showing that 97% of Chinese enterprises list overseas expansion as a core business strategy. However, they commonly encounter various difficulties in overseas implementation.rnrn82% of enterprises
rnrnDriven by the "China Plus One" global layout strategy, a large number of Chinese enterprises seek to establish overseas production and operation bases. Southeast Asia has become a core deployment region. The head of JLL Indonesia pointed out that Indonesia has great potential to host Chinese enterprises' overseas expansion, which will continue to drive demand for local commercial real estate such as industrial land, logistics warehouses, and office spaces. JLL released the latest research report "Thriving Outward: Global Real Estate Strategies for Chinese Enterprises", showing that 97% of Chinese enterprises list overseas expansion as a core business strategy. However, they commonly encounter various difficulties in overseas implementation.rnrn82% of enterprises face unexpected obstacles during the site selection stage, nearly two-thirds of projects experience schedule delays, over half exceed budgets, and nearly one-third of enterprises have to compromise on sites with poor location conditions just to start production as soon as possible. The Co-CEO of JLL Greater China stated that commercial real estate management has become a key element for Chinese enterprises to enhance global competitiveness. Real estate-related decisions such as site selection planning, asset operation and maintenance, office layout, and cross-border coordination directly determine the success or failure of enterprises' overseas expansion. The Research Head for China added that the biggest weakness for Chinese enterprises going overseas is unfamiliarity with the rules of target countries' real estate markets, leaving them constrained in site selection, compliance interpretation, and negotiations with local landlords.rnrnTo address these pain points, approximately three-quarters of surveyed Chinese enterprises plan to establish standardized overseas site selection processes, and nearly half of the enterprises intend to hire professional real estate consulting firms to provide full-process services in the next two years. The complexity of cross-border operations continues to increase. Enterprises cannot guarantee expansion success by relying solely on market opportunities; they must rely on local professional partners and thoroughly understand local market dynamics to make long-term, sound investment decisions. Facing the sustained growth of Chinese enterprises' willingness to deploy in Indonesia, the local market needs to improve the supporting investment ecosystem and continuously supply industrial parks, logistics facilities, and office spaces suitable for foreign capital needs, matching the long-term production and operation demands of Chinese enterprises and seizing the China Plus One industrial relocation dividend.
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