A growing appetite for warehouse space is sweeping across Jabodetabek. In the first four months of 2025, the Jabodetabek region—covering Jakarta, Bogor, Depok, Tangerang, and Bekasi—has seen a marked uptick in demand. This surge has not only pushed occupancy rates higher but also signaled the strength of Indonesia’s modern logistics landscape.
Data from commercial real estate firm JLL reveals that warehouse space vacancy rates in Jabodetabek dropped to 9.5% during the first quarter.
“The modern warehousing sector showed resilience in the first quarter of 2025, with occupancy rates increasing from 87% to 90%. This growth reflects healthy demand in the logistics sector,” said Farzia Basarah, Country Head and Head of Logistics & Industrial at JLL, in an official statement released Wednesday, May 7.
Driving this demand are Chinese companies, especially those in fast-growing sectors like electric vehicles (EVs), electronics, home appliances, and fast-moving consumer goods (FMCG). These firms are actively seeking ready-to-lease facilities that meet specific technical requirements.
“Chinese companies, especially those in the electric vehicle (EV), electronics, home appliance, and fast-moving consumer goods (FMCG) sectors, are the main drivers of demand for ready-to-lease facilities with specific technical requirements,” Farzia explained.
Hybrid warehouse spaces, which support not only storage but also assembly and repair activities, are also in demand. However, this rising interest in logistics space has sparked growing price competition in several areas.
“Areas with intense competition tend to offer more competitive rates compared to more stable regions,” Farzia noted. According to JLL, the eastern corridor has seen fierce rental competition as lease growth slows. Meanwhile, East and South Jakarta have recorded falling rental prices due to rising competition. In contrast, other regions have managed to keep their rates relatively steady.
The logistics sector’s momentum has caught the eye of new investors. JLL highlights that developments in local manufacturing, ongoing economic expansion, and increased foreign direct investment (FDI) continue to drive interest. “The logistics sector continues to attract new investors, driven by manufacturing development, economic growth, and rising foreign investment,” said Farzia.
This investor enthusiasm is also pushing stakeholders to explore various strategies—ranging from joint ventures and land acquisitions to broader development plans. The ongoing strength of Indonesia’s manufacturing sector plays a big part in this optimism. Combined with solid economic growth and a steady inflow of FDI, the logistics industry appears ready to adapt to dynamic shifts.
Read also: Thyme from Indonesia Becomes a Favorite Among Europeans and Japanese
But despite rising demand, supply is lagging. JLL reports that only one new warehouse project entered the Jabodetabek market in early 2025: a 7,200-square-meter facility in Daan Mogot, Tangerang. This highlights a critical gap between market appetite and available infrastructure.
This shortfall is also reflected in recent government actions. President Prabowo Subianto earlier acknowledged a challenge when the national rice supply surged following a strong local harvest. State-owned logistics agency Bulog ran out of warehouse space, forcing the government to rent private storage facilities. Eventually, the President ordered the construction of emergency warehouses to handle the excess stock until permanent facilities are built.
The message is clear: Indonesia’s logistics and storage sectors are under pressure—but they’re also ripe with opportunity. As demand continues to grow, both private and public sectors are being pushed to respond faster, smarter, and more strategically.
