Electric Vehicle Investment Boosts Industrial Land Uptake by 10%

Electric Vehicle Investment Boosts Industrial Land Uptake
Electric Vehicle Investment Boosts Industrial Land Uptake

Industrial land uptake is estimated to grow continuously by up to 10% this year. This significant growth is influenced by investment enthusiasm and the electric vehicle ecosystem development in Indonesia.

This industrial land uptake prospect was conveyed by the chairman of the Association of Indonesian Industrial Estates (HKI) Sanny Iskandar. He revealed that the increase in absorption of manufacturing industrial land in 2023 is projected to be up to 10 percent.

In 2022, HKI recorded that the land absorbed by the manufacturing industry was 519.38 hectares, a decrease of 107.84 hectares from the land absorption in the previous year which reached 627.22 hectares.

Compared to the absorption of manufacturing industrial land in 2022, this figure will increase by around 51 hectares, to 570.38 hectares in 2023.

One of the triggers for the increase in land absorption for the manufacturing industry is the increasingly massive development of electric vehicles in Indonesia this year.

“This EV [electric vehicle] will affect [on the absorption of manufacturing industrial land], including the 10 percent growth,” added Sanny.

Furthermore, the growth of the manufacturing industry also plays a role in increasing the absorption of industrial land.

The manufacturing industry in 2022 recorded growth of 5.01 percent, 3.67 percent higher than the previous year’s results.

“The positive performance of the manufacturing industry is in line with several indicators throughout 2022, including the Industrial Confidence Index (IKI) and Indonesian manufacturing Purchasing Manager’s Index (PMI), which are both at expansive levels,” said Minister of Industry Agus Gumiwang Kartasasmita in a statement Tuesday. , (7/2/2023).

The results of the IKI in January 2023, the manufacturing industry was in the position of 51.54, or an increase compared to the IKI in December 2022 which touched the level of 50.9. Meanwhile, S&P Global reported that Indonesia’s manufacturing PMI in January 2023 was 51.3, an increase compared to December 2022 at 50.9.