Surge in Industrial Land Sales Signals Robust Growth Amidst Sector Expansion

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

The industrial landscape is witnessing a swift surge in land sales, hitting 203.9 hectares in the January-September period, marking Q3/2023. This is a substantial increase compared to the same span last year, which recorded 139.7 hectares.

The revelation comes directly from the Association of Industrial Zones (HKI), with Sanny Iskandar, the Chairman of HKI, sharing insights into the industrial land absorption forecast for 2024. He anticipates a continued positive growth trajectory, attributing it to the expansion of sectors like automotive, data centers, and technology-based industries.

Sanny notes, “For the automotive sector, electric vehicles (EVs), data centers, and other tech-oriented industries are expected to remain significant contributors to land absorption in industrial zones.”

During this timeframe, the absorption was prominently fueled by the demand in the West Java region, reaching 59.56 hectares. According to Sanny, industrial zones along the Jakarta-Cikampek Toll Road (Japek) continue to be favored.

In parallel, the development of industrial zones extends towards the eastern part of Jakarta, encompassing areas such as Purwakarta and Subang, supported by the strategic location of the Patimban Port.

“In the western part of Jakarta, the focus extends towards Serang, backed by the ongoing development of the Bojonegara Port,” he further elaborated.

Turning the gaze towards the overall performance, Sanny observes that the industrial land sales have consistently maintained a positive trajectory in the lead-up to the political year 2024. Reflecting on patterns from 2018 and previous election years, he emphasizes the conducive environment that prevailed during those periods.

This favorable condition nurtures the hope among industrial zone stakeholders that no adverse sentiments will impede land demand in the coming year.

“We’ve also observed positive trends in land sales early in 2023, with land prices demonstrating stability,” he noted.

However, Sanny concedes that the negotiation process for land in industrial zones can be time-consuming, especially when dealing with substantial land areas. In the eyes of investors, various considerations come into play before making investment decisions, including the overall investment climate during election periods and the anticipated potential post-elections.