Industrial Estate Developers Face Headwinds in 2025

Challenges in Industrial Property Sector

The industrial estate development sector in Indonesia experienced significant challenges during the first nine months of 2025. Weak foreign investment inflows and delayed manufacturing expansion have been the primary factors affecting business growth in this segment. The slowdown in investment activities has directly impacted the performance of companies operating in this space.

Financial Performance Analysis

PT Surya Semesta Internusa Tbk (SSIA), a prominent player in the industrial estate development sector, reported a 14.15% year-on-year decline in revenue to Rp 3.31 trillion for the nine months ending September 2025. More concerning was the 97.17% YoY drop in net profit attributable to the parent company's shareholders, which fell to Rp6.46 billion. The substantial decline in profitability was primarily attributed to the major renovation at Paradisus by Meliá Bali (previously known as Meliá Bali Hotel), which significantly impacted the company's financial performance during the period.

Market Outlook and Analyst Recommendations

Analysts are cautious about the industrial estate sector due to the prevailing market conditions. While some companies may present better opportunities than others, investors are advised to carefully evaluate their investment choices. The current market dynamics suggest that stock selection will be crucial for investors looking to navigate this challenging landscape.