Industrial Estate Developers Face Headwinds in 2025

Revenue and Profit Decline Amid Economic Uncertainty

Indonesian industrial estate developers experienced a challenging period in the first nine months of 2025. PT Surya Semesta Internusa Tbk (SSIA), a prominent player in the sector, reported a 14.15% year-on-year (YoY) decline in revenue to Rp 3.31 trillion for the period ending September 2025. The company's net profit attributable to the parent entity plummeted 97.17% YoY to Rp 6.46 billion during the same period.

Factors Contributing to Weak Performance

The decline in SSIA's financial performance can be attributed to two primary factors: the decrease in foreign direct investment (FDI) and ongoing global economic uncertainty. These challenges have affected the industrial estate development sector significantly, as foreign investment plays a crucial role in driving demand for industrial estates. The uncertain global economic environment has likely caused investors to adopt a cautious approach, resulting in reduced investment inflows.

Market Outlook

The industrial estate development sector is expected to remain under pressure as long as global economic uncertainty persists and FDI continues to decline. However, Indonesia's strategic position and growing infrastructure development could potentially attract more investment in the long term. Analysts from Mirae Asset suggest that while the current situation is challenging, there are opportunities for growth as economic conditions improve.