JLL: Indonesia Poised to Attract Investment from China+1 Trend
Indonesia is considered to have a significant opportunity to attract investment from Chinese companies that are expanding globally through the China+1 strategy. This trend is encouraging more firms to seek new production bases and operational hubs abroad, including in Southeast Asia.
JLL Indonesia Country Head Farazia stated that Indonesia is one of the countries being considered by Chinese companies as a business development location. This situation is expected to drive demand for various commercial property assets, ranging from industrial estates and logistics facilities to office space.
“The China+1 trend continues to open growth opportunities for Indonesia. We are seeing more Chinese companies considering Indonesia as a production base or regional operational centre, thereby driving demand for various commercial property assets, from industrial estates and logistics facilities to office space,” Farazia said in a written statement on Thursday (2/7/2026).
According to her, Chinese companies are increasingly realising that international expansion cannot rely solely on market opportunities. Successful expansion is also determined by a structured strategy, support from local partners, and an understanding of the target market’s characteristics.
These findings align with JLL’s latest research titled “Thriving Beyond: Corporate Real Estate Strategies for Chinese Companies Going Global”. Based on the survey, 97 per cent of Chinese companies consider overseas expansion an important part of their business strategy.
However, the research also shows that many companies still face various obstacles when entering international markets. As many as 82 per cent of respondents admitted to experiencing unexpected challenges in the process of selecting business locations abroad.
As a result, nearly two-thirds of companies experienced project delays that disrupted expansion schedules, while more than half faced cost overruns. In fact, almost a third of respondents were forced to choose locations deemed less than ideal so that operations could commence immediately.
JLL Greater China Co-Chief Executive Officer Anny Zhang said that commercial property management has now become an important part of supporting the competitiveness of globally expanding companies. According to her, decisions related to location selection, asset management, and cross-border coordination play a major role in the success of international expansion.
“The strategic role of corporate real estate is now increasingly evident. Decisions related to location strategy, asset management, workplace planning, and cross-border coordination are important factors supporting the success of international expansion and the global competitiveness of Chinese companies,” Zhang said.
Meanwhile, JLL Head of Research China Daniel Yao assessed that one of the biggest challenges for Chinese companies when expanding is the lack of understanding of the property market characteristics in the destination country. This condition often makes it difficult for companies to determine business locations, understand regulations, and negotiate with local property owners.
In light of these challenges, more companies are beginning to adopt a more professional approach to managing commercial property needs abroad. JLL’s research noted that around three-quarters of respondents plan to build a more standardised international location selection process, while nearly half will utilise professional property consultancy services within the next two years.
Farazia added that the growing interest of Chinese companies in expanding to Indonesia is an opportunity that needs to be met with investment ecosystem readiness, including the provision of industrial estates, logistics facilities, and office space capable of supporting investors’ needs sustainably.
“As the complexity of cross-border operations increases, the success of expansion is no longer sufficient by merely looking at market opportunities, but also requires the support of the right partners and a deep understanding of local market dynamics to support more precise and sustainable decision-making,” Farazia said.