ESR and MCUDI to Build Two Logistics Facilities Worth US$80 Million in Greater Jakarta

Asia-Pacific real asset manager ESR, together with PT MC Urban Development Indonesia (MCUDI), a subsidiary of Mitsubishi Corporation, is constructing two Grade A logistics and industrial facilities in the Greater Jakarta area (Jabodetabek) with an asset value exceeding US$80 million, targeted for completion in the third quarter of 2027. This investment reflects ESR’s asset-light strategy and focuses on Asia-Pacific markets with clear demand visibility and strong partner alignment. Head of Southeast Asia at ESR, Jai Mirpuri, stated that following the success of their previous collaboration, the companies are expanding the development of institutional-standard logistics and industrial assets in strategic locations within Jabodetabek. Mirpuri noted that this development constitutes the second phase of the strategic partnership between ESR and MCUDI in Indonesia, after the two companies previously developed Karawang Logistics Park 1, Cikarang Logistics Park 1, and Cikarang Logistics Park 2, which recorded strong market demand. The two new projects consist of the Karawang Logistics and Industrial Hub in the Suryacipta City of Industry and the Cikarang Logistics and Industrial Hub in the Jababeka II Industrial Estate. The Karawang Logistics and Industrial Hub is being built on a 100,000 square metre land plot with a building area of approximately 63,000 square metres, intended to meet modern warehousing needs for the logistics and manufacturing sectors. Meanwhile, the Cikarang Logistics and Industrial Hub is being developed on a 68,000 square metre site with a building area of around 48,000 square metres to serve multinational customers in the logistics, e-commerce, and manufacturing sectors. Incoming President Director of MCUDI, Hideaki Nakajima, said the collaboration combines Mitsubishi Corporation’s real estate development experience and network with ESR’s expertise in fund management and asset development. He expressed hope that the synergy between the two companies would deliver institutional-standard logistics facilities that meet the needs of both domestic and global customers in the Greater Jakarta area. Both facilities are designed with modern fire safety standards, earthquake-resistant structures, and sustainability features such as LED lighting, FRP skylights, and readiness for solar panel installation. Construction on both projects has commenced and is targeted for completion by the third quarter of 2027. The facilities are supported by direct access to the Jakarta-Cikampek Toll Road, while the Karawang Logistics and Industrial Hub will also be connected to the Jakarta-Cikampek II South Toll Road in the future.