Diversification into logistics and warehousing assets has become a\nsurvival strategy for developers amid pressure from interest rates and\npurchasing power.<\/p>\n
When many people still view property as a matter of houses and\napartments, the business direction of major developers is quietly\nshifting. No longer are residences the prime focus, but rather\nwarehouses and logistics zones.<\/p>\n
A sector that has long escaped public attention, yet is becoming the\n\u201cnew engine\u201d of growth.<\/p>\n
This trend has been seized upon by one of Indonesia\u2019s industry\nplayers, PT Astra Property. Since 2025, they have begun redirecting\ntheir focus to the industrial sector as a new source of growth. Last\nyear, this Astra International subsidiary actively pursued acquisitions\nwith players in the logistics property sector.<\/p>\n
One of them was the acquisition of PT Mega Manunggal Property Tbk\n(MMP), a listed industrial and logistics property developer on the\nIndonesia Stock Exchange, which operates 13 warehouses in major\nindustrial and infrastructure hubs in Jabodetabek and Surabaya, East\nJava.<\/p>\n
The assets with MMP include warehouses that can be rented by\nindividuals lacking sufficient space at home to store infrequently used\nitems. Located in East Jakarta, the warehouse provides rooms of 3-5\nsquare metres with rental costs under Rp 3 million per month.<\/p>\n
Furthermore, Astra Property, through a joint venture with ESR, a\nleading Asian real estate investor and manager, also controls two\nwarehouses: Cikarang Logistics Park 1 and 2, spanning 17.3 hectares in\nCikarang, Bekasi Regency, West Java.<\/p>\n
Astra Property\u2019s President Director, Wibowo Muljono, in Jakarta on\nWednesday (29\/4\/2026), stated that expansion into the industrial sector\nis a strategic step to strengthen portfolio diversification. Previously,\nAstra\u2019s property business was supported by residential and commercial\nsegments.<\/p>\n
Astra Property had previously developed three landed housing\nprojects: Asya, Ammaia, and Altea BLVD. Additionally, there are two\napartment assets: Anandamaya and Arumaya with over 1,400 units handed\nover. This residential portfolio is located in Jakarta and its\nsurroundings.<\/p>\n
In the commercial line, Astra Property owns two office buildings,\nincluding Menara Astra, one hotel, and two shophouses. This year, the\ncompany will soon operate Arumaya Financial Center at The Arumaya, South\nJakarta, in the second quarter of 2026.<\/p>\n
However, the company is now promoting industrial as the third pillar.\nAccording to Wibowo, this diversification approach is crucial to\nmaintain business resilience, especially when one segment faces\npressure.<\/p>\n
The global trend is now deemed more favourable for industrial\nproperty businesses. Astra Property sees an increase in demand for\nindustrial and logistics space in recent times, including from foreign\ncompanies expanding operations in Indonesia. This is partly due to the\neffects of the US-China trade war.<\/p>\n
\u201cThere has been a change in tenant composition, with more new\ncompanies entering and requiring warehouses or logistics facilities,\u201d\nsaid Wibowo.<\/p>\n
Meanwhile, the residential segment is currently more sensitive to\ninterest rate hikes because it relies on home ownership credit (KPR)\nfinancing.<\/p>\n
\u201cResidential follows the buying and selling cycle very closely. If\ninterest rates rise, the impact is immediately felt,\u201d said Wibowo.<\/p>\n
Therefore, Astra Property\u2019s residential asset portfolio is\nacknowledged to pursue margins over volume.<\/p>\n
In the current situation of weak purchasing power, the company is\nadjusting strategies, including redesigning projects to better match\nlocal market characteristics. One example is their residential project,\nAmmaia in Cikupa, Tangerang, Banten.<\/p>\n
Wibowo explained that they will redevelop the concept of this landed\nhousing complex. One reason is that the targeted market segment does not\nalign with the purchasing power in that area, even though they still\ntarget the upper-middle class.<\/p>\n
\u201cSegmentation must be viewed by region. High-end in one city cannot\nbe equated with another,\u201d he said.<\/p>\n
Throughout 2025, the sales performance of Astra Property\u2019s\nresidential segment was acknowledged to have slowed. Meanwhile, the\ncommercial segment remains the largest contributor to operating income,\nwhich reached Rp 1.13 trillion last year.<\/p>\n
The industrial segment, newly recorded for three months in the 2025\nfinancial performance, is expected to grow significantly in 2026. This\nsegment is also hoped to contribute income close to the commercial\nsegment, which has long been the company\u2019s largest revenue source.<\/p>\n
Overall, Indonesia\u2019s industrial property sector has experienced rapid\ngrowth of around 9% per year in recent years, far surpassing national\nGDP growth.<\/p>\n
Warehousing needs are projected to grow by 8-10% per year until 2030,\noffering attractive long-term investment potential. This is driven by\nstrong demand from the logistics, e-commerce, consumer products or\nfast-moving consumer goods (FMCG), and manufacturing sectors.<\/p>\n
This phenomenon is not unique to Astra Property. Industry-wide, data\nshows the same pattern. The first-quarter 2026 property performance\nreport by Cushman & Wakefield notes that the industrial sector\nperformed as one of the main growth drivers, amid more moderate\nmovements in the commercial and residential segments.<\/p>\n
In the industrial segment, market performance appears relatively\nsolid. Demand for industrial land in the first quarter of 2026 reached\n68 hectares, dominated by local investors and significant contributions\nfrom Chinese companies.<\/p>\n
This activity is mainly concentrated in Bekasi and Purwakarta areas\nin West Java, which continue to attract new industrial developments.\nAdditionally, the textile and FMCG sectors are the main drivers of\ndemand, followed by new needs from data centre developments.<\/p>\n
Not only from the demand side, other performance indicators j<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/warehouse-investment-becomes-the-new-gold-kompas-id-1777694010", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }