The expansion of manufacturing corporations and the development of\ndata centre technology are expected to trigger a hunt for industrial\nland in the second half of 2026. This condition is projected to be the\nmain catalyst that will re-ignite investment value in the industrial\nproperty sector towards the end of the year.<\/p>\n
The Indonesian Industrial Estates Association (HKI) has confirmed\nthat the portion of land absorption is now shifting with the arrival of\nhyperscale data centre investors. HKI Chairman Akhmad Ma\u2019ruf Muhammad\nstated that there is an increasing demand trend for land for this\ntechnology-intensive sector. This is because the data centre industry\nrequires rigid and extensive land localisation to maintain data\nsovereignty and regional connectivity transmission efficiency.<\/p>\n
\u201cLand demand [in the second half of 2026] will be largely supported\nby the data centre sector,\u201d he explained on Tuesday (14\/7\/2026).<\/p>\n
At the same time, land demand for the manufacturing sector also\nremains high. The flow of investment entering Indonesia recently has\nbeen recorded as quite significant. Referring to data from the Ministry\nof Investment and Downstreaming\/Investment Coordinating Board (BKPM),\ninvestment realisation reached Rp498.8 trillion in the first half of\n2026, equivalent to 24.4% of the 2026 target set at Rp2,041.3 trillion.\nThis means there is still a large investment space of Rp1,542 trillion\nto be pursued for entry into Indonesia this year.<\/p>\n
Along with this, HKI projects that demand for industrial plots in\nseveral main corridors of Java will experience a significant escalation\nin the near future. Therefore, there will be a number of new industrial\nestate developments to answer the need for industrial land. \u201cExpansion\nwill occur in the Riau Islands, Tanjung Pinang, Batam. Meanwhile, in the\nJava corridor, there are East Java, Gresik, Sidoarjo, West Java, Central\nJava and new developments in Madura,\u201d he added.<\/p>\n
To facilitate the expansion of industrial estate development, HKI\nalso considers the ratification of the Industrial Estate Bill as a\nconcrete step to overcome investment barriers in the manufacturing\nsector. Previously, Akhmad explained that investment realisation has\nbeen hampered by regional licensing bureaucracy and unresolved land\nlimitations. \u201cThat is why industrial estates now urgently need the\nIndustrial Estate Bill. We urge that this bill be accelerated, so that\nit is clean this year,\u201d he said.<\/p>\n
He assessed that the success of attracting global investors will be\ndetermined by the speed of licensing services at both the central and\nregional government levels. \u201cThis is a classic problem. From year to\nyear, from regime to regime, this is always the problem. Now the\ncondition is getting worse. That is why we need a task force to\naccelerate investment,\u201d he concluded.<\/p>\n
Property consultancy Colliers Indonesia predicts that the industrial\nestate area in Semarang will become one of the most competitive along\nthe northern corridor of Java. Colliers Indonesia Senior Associate\nDirector Ferry Salanto explained that the area\u2019s investment appeal is no\nlonger solely based on cheap land prices or competitive minimum wage\ncosts. Instead, the Greater Semarang region is beginning to transform by\noffering mature infrastructure and a high-quality operational ecosystem.\n\u201cWe see that Semarang can now offer a quality industrial ecosystem. So\nif we look at it, developers there are not just selling land, but are\nalso starting to be concerned with operational certainty for investors,\u201d\nsaid Ferry.<\/p>\n
He added that the priorities of investors in determining their\nproduction bases have now shifted. Global manufacturing investors are\nnow placing more emphasis on guarantees of supporting facility\nreliability to mitigate business disruption risks. This condition has\nencouraged industrial estate developers in the Semarang corridor to\ncompete in maturing utilities within the estates, from strengthening\ndrainage systems and ensuring energy supply, to integrating logistics\nnetworks.<\/p>\n
The spread of industrial growth points in the Greater Semarang area\nis now increasingly expanding to buffer zones. This expansion covers the\nwestern corridor, such as Kendal and Batang regencies, to the eastern\nside leading to Demak Regency. The presence of two Special Economic\nZones (KEK) in the corridor has also become a strong catalyst that\nboosts the region\u2019s investment competitiveness. The KEK status provides\nvarious fiscal and non-fiscal incentives that are highly sought after by\nlarge-scale industry players. In addition, the ease of logistics\nconnectivity through the integration of the Trans-Java toll road network\nand direct access to seaports complements the region\u2019s advantages. This\nis believed to continue attracting high value-added manufacturing\nindustries and global digital infrastructure to Semarang.<\/p>\n
Amidst the significant potential for investment activity in the\nindustrial estate development sector, the government is reportedly\npreparing the formation of a National Industrial Estate Council (DKIN).\nThe DKIN will later be tasked with cutting through the barriers that\nhave been complained about by industrial estate developers. Based on\nrecords, the Director General of Resilience, Regionalisation, and\nInternational Industrial Access at the Ministry of Industry, Tri\nSupondy, stated that industrial estate development requires stronger\ncoordination among ministries and agencies because it involves various\naspects ranging from development planning, spatial planning, energy, to\ninfrastructure.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/industrial-estates-eye-data-centre-and-manufacturing-expansion-for-second-half-investment-boost-1784105452", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }