Surge in Demand for Ready-Built Factories in Jabodetabek

Driven by Chinese Manufacturers

The demand for ready-built factories (RBF) in the Jabodetabek region has seen a significant increase, primarily driven by companies from China. According to PT Leads Property, a property consultant, this surge is a response to the high import tariffs imposed by the United States on Chinese products. Associate Director Head of Industrial Services at Leads Property, Esti Susanti, highlighted that this trend is creating both opportunities and challenges in the industrial property market.

Market Dynamics

The increased demand is attributed to Chinese manufacturers looking for alternative production bases to mitigate the impact of US tariffs. However, the supply of ready-built factories in Jabodetabek remains limited, creating a competitive environment for these facilities. This situation is likely to drive up rental prices and occupancy rates for RBFs in the region.

Implications for Industrial Property Market

The trend indicates a growing interest in Indonesia as a potential manufacturing hub. The limited supply of RBFs suggests that developers may need to consider increasing their offerings to meet the rising demand. This development could lead to further investment in the industrial property sector, particularly in regions with existing infrastructure and favorable business conditions.