Greater Jakarta Increasingly Attractive as Technology-Based Industrial Ecosystem

Industrial estates in the Greater Jakarta area are increasingly developing into an industrial ecosystem that not only relies on labour-intensive sectors but is also beginning to attract technology-based investment. Country Head of Knight Frank Indonesia, Willson Kalip, said this development is reflected in the rising land absorption for strategic industries such as data centres and sectors related to electric vehicles (EV).

According to Willson, Greater Jakarta has several industrial submarkets that form an agglomeration of estates and is one of the potential locations for developing various types of industry. ‘The industrial submarkets in the Greater Jakarta area are a prime agglomeration for industrial development, not only labour-intensive but also technology-intensive,’ said Willson.

The expansion indicates a change in the character of Greater Jakarta’s industrial estates. Whereas manufacturing activity was previously more associated with labour-intensive industry, the area is now increasingly diverse with the presence of industries that require adequate infrastructure, technology and connectivity support.

Willson assessed that development in several corridors has the potential to strengthen Greater Jakarta’s competitiveness amid competition for industrial investment, both from domestic and foreign sources. With the growing diversity of industrial activity centres, Greater Jakarta is seen as having the opportunity to develop into a multi-nodal industrial ecosystem, an industrial ecosystem that no longer relies on one main area but is spread across several interconnected industrial nodes.

This trend also shows that the appeal of Greater Jakarta’s industrial estates is increasingly shifting towards greater diversity. In addition to offering an established manufacturing base, the area is beginning to strengthen its position as an investment destination for technology industries and new sectors with long-term growth prospects. The presence of data centres and EV-related industries is an important indicator of this transformation. If continuously supported by infrastructure, connectivity and an integrated industrial ecosystem, Greater Jakarta has the opportunity to become more robust as one of Indonesia’s strategic industrial and investment centres.