Source: National Single Window for Investment (NSWI) Ministry of Investment Coordinating Board (BKPM), 2024

Chinese companies across multiple sectors, including EVs, battery manufacturing, Original Equipment Manufacturers (OEMs), automobiles, semiconductors, electronics technology, household appliances, metallurgy, textiles, and fast-moving consumer goods (FMCGs) are actively seeking ready-to-lease facilities. During the first quarter of 2025, warehouse space inquiries were predominantly driven by the EV ecosystem and its supply chain partners, who typically present specialised facility requirements. This trend reflects the growing Chinese investment in this industry.

Some Chinese companies view Indonesia as a relocation hub from other markets. Others are exploring land acquisition for building their own manufacturing facility, or pursuing build-to-suit projects with sell or lease options. This has created demand for hybrid spaces accommodating both storage and light manufacturing. Despite limited availability, demand persists for large, flexible, ready-to-use facilities. Chinese investors initially sought rental, ready-to-use factories, but have pivoted toward modified modern warehouses due to limited inventory. This investment pattern corresponds with the "China-plus-one" diversification approach, as Chinese manufacturers establish a presence across Southeast Asia. Within Indonesia, the eastern corridor of Jakarta, specifically Cikarang, Karawang, Subang, and Semarang, has emerged as the preferred location for Chinese industrial investment. With Chinese companies being key drivers, supported by healthy demand, the Greater Jakarta modern logistics warehouse market demonstrated resilience. Occupancy rates are currently improving to 90%.

Figure 2: Modern logistics warehouse occupancy rate in Greater Jakarta