JAKARTA, Agung Intiland News - The flow of Chinese manufacturing investment to Southeast Asia is becoming more intensive and is starting to drive an increase in demand for industrial warehouses in Indonesia, especially in strategic areas such as the Tangerang industrial zone and the western Jakarta corridor.
Production relocation and global supply chain diversification are the main factors behind the transfer of some of China's manufacturing capacity to ASEAN countries. Indonesia is one of the primary destinations due to the combination of a large domestic market, downstream incentives, and the availability of integrated industrial zones.
Investment Surge and Its Impact
Government data shows that the manufacturing sector remains a significant contributor to national economic growth, with the contribution of industrial zones to GDP reaching around 9.44%. Meanwhile, the total number of active industrial zones in Indonesia is recorded at around 175 areas.
On the logistics property side, the supply of modern warehouses in Jabodetabek has reached approximately 3.1 million square meters, with demand levels remaining stable as new investments come in.
The increase in manufacturing activity directly triggers the need:
- The distribution warehouse is near the toll road and the port.
- Facilities with modern specifications (loading dock, high ceiling, 24-hour security)
- Industrial area with legal status and ready-to-use infrastructure
Tangerang Becomes a Strategic Point
The Tangerang area has become one of the most advantageous locations. Its proximity to Soekarno-Hatta Airport, access to the Jakarta-Merak toll road, and connectivity to Tanjung Priok and Patimban ports make this area a top choice for investors.
The demand for industrial warehouses in Indonesia is no longer limited to e-commerce expansion, but also comes from electronics manufacturing, automotive components, textiles, and FMCG that require regional distribution facilities.
Management Area Statement
The management of Laksana Business Park stated that the trend of Chinese manufacturing investment has a tangible impact on the increase in land and warehouse inquiries. "Investors are now quicker in making decisions, but also more selective." "They are looking for industrial areas in Tangerang that are infrastructure-ready, have strong logistics access, and support operational efficiency," said a representative from Laksana Business Park management. According to him, in recent months, interest in Indonesian industrial warehouses has shown a stable trend with potential for an increase in the first half of 2026.
Prospect 2026
With the global geopolitical dynamics and the production diversification strategies of Chinese companies, Indonesia is projected to remain a primary destination for manufacturing investment in Southeast Asia. As a result, the demand for industrial land and modern warehouses is expected to remain positive throughout the year.
Industrial areas that can provide infrastructure readiness, space flexibility, and logistics ecosystem support are predicted to be the winners in the regional competition. (JP)
