Not Bekasi-Karawang! Factories Flock to Subang, What's Going On?
The industrial estate map around Jakarta is beginning to change. Industrial activity that has so far been concentrated in Bekasi and Karawang is now spreading further east, including towards Subang and several areas in Central Java. The expansion is occurring as land supply in the eastern corridor of Greater Jakarta increases. This situation gives new industrial estates more room to accommodate business expansion, especially as land availability in mature estates becomes increasingly limited.
Senior Research Advisor at Knight Frank Indonesia, Syarifah Syaukat, said the change is not merely a relocation of industrial activity from one estate to another. According to her, the centre of industrial activity is actually widening with the emergence of new estates outside traditional hubs. “And we see that this movement is starting to widen, not just shifting but expanding to the Subang area and even to the central part of Java,” Syarifah said during a virtual press conference on Thursday (20/8/26).
The change is visible in the development of land supply in the eastern corridor. Several industrial estates are also beginning to prepare additional land that can be offered to prospective investors in the coming years. On the other hand, industrial land sales are still showing growth, albeit not very high. This movement shows that demand for industrial estates remains amid the shift in location towards the east.
“We see that the take-up rate or sales rate is still relatively stable, as I mentioned earlier, growing by around 2%. And supply is also increasing from the eastern corridor. We also see that several estates have landbanks that will be ready to be released as additional stock in the next few years,” Syarifah said.
Subang is one of the areas beginning to attract attention in this changing map. The area is considered to have the opportunity to become a new choice for industries that need land at relatively more competitive prices compared with a number of more mature industrial estates. In this situation, price differences are one of the factors making new areas more attractive to prospective land users. Several estates outside the main hubs offer lower prices, providing an alternative for industries wanting to expand.
“For overall land prices, the chart on the right shows that several sub-markets have a price range of around Rp2 million to Rp3 million per square metre. And we see that the dark green and light green lines represent Subang and Sukabumi, which overall have prices below that average of Rp2 million to Rp3 million,” Syarifah said.