Mixed Performance in Indonesia's Industrial Estates

Significant Investment in Batang Industrial Estate

KEK Industropolis Batang, part of the Danareksa State-Owned Enterprises Holding, closed 2025 with significant investment achievements. The industrial estate recorded Rp 4.87 trillion in investments, covering 93.67 hectares of land utilization ¹

. This investment influx was driven by 12 new investors from diverse countries including Hong Kong, Singapore, Malaysia, Indonesia, and China. The investments spanned various strategic industries such as battery production, automotive, medical equipment, garment, outdoor furniture, food and beverages, footwear, steel, textiles, and packaging.

National Industrial Estate Occupancy Challenges

In contrast to Batang's success, the national industrial estate occupancy rate remained subdued. As of November 2025, Indonesia's industrial estate occupancy stood at 58.19%, according to the Ministry of Industry ²

. Currently, there are 175 operational industrial estates in Indonesia, managing a total area of 98,235.59 hectares. The Ministry attributes the low occupancy primarily to the addition of new industrial estates throughout 2025. Eleven new industrial zones were introduced, adding 4,468 hectares of industrial land.

Industry Response and Future Prospects

The diverse composition of industries in Batang strengthens the industrial ecosystem, making it modern and globally competitive. Ngurah Wirawan, CEO of KEK Industropolis Batang, stated that the industrial estate is on the right track in promoting national industrial investment realization. The success in Batang contrasts with the national trend, suggesting that well-managed industrial estates can attract significant investment despite broader sector challenges.