The industrial land demand stays resilient amid cautious expansion.
Jakarta’s industrial property market continued to show resilient demand in Q1 2026, although occupiers and investors adopted a more selective approach to expansion amid global uncertainty, according to a report from Colliers.
Colliers reported that total industrial land absorption reached nearly 90 hectares during the quarter, significantly higher than the level recorded in the same period last year, despite the typically slower start to the year.
The consultancy said market demand remained “cautiously active” as geopolitical tensions and energy price volatility influenced investment decisions, leading to longer decision-making processes and more conservative expansion strategies, including partnerships to mitigate risk.
According to Colliers, market activity was primarily driven by expansions from existing tenants rather than new market entrants. While foreign investor interest remained visible, most potential investors were still in the exploratory phase, with limited acceleration in realized investments.
Demand during the quarter was led by the manufacturing, chemical and data center sectors.
In the western corridor, Krakatau Cilegon Industrial Estate (KIEC) recorded around 26 hectares of land sales, led by a petrochemical company acquiring about 12 hectares, followed by an EV manufacturer with approximately 8 hectares and a piping company with around 6.5 hectares, Colliers said.
Purwakarta also saw strong activity, with Jatiluhur Industrial Smart City (JISC) securing around 22 hectares from multiple investors. The largest deal came from a local manufacturing company taking about 15 hectares, while food and other manufacturing industries accounted for the remaining transactions.
In Bekasi, land transactions remained limited due to constrained supply. GIIC recorded around 4 hectares from a data center operator, while Bekasi Fajar secured approximately 2 hectares from two local manufacturers. Jababeka recorded about 4.7 hectares of transactions, mainly driven by a textile company, alongside occupiers from the food and beverage, healthcare, logistics and steel-related sectors.
Karawang maintained steady demand, supported by manufacturing and technology-related occupiers. KIIC recorded around 10 hectares from a data center operator, while Suryacipta and Artha Industrial Hill each secured roughly 6 hectares from a paper cup manufacturer and a textile company, respectively.
Colliers added that Subang showed early signs of expansion from existing tenants, with a textile company in Subang Smartpolitan expanding by about 2 hectares, reflecting growing confidence in the area’s long-term prospects.
Meanwhile, Modern Cikande recorded approximately 2.7 hectares of transactions driven by chemical and zinc manufacturing companies, indicating ongoing demand from heavy industries and supporting sectors.
Colliers said the market continues to be supported by sectors with strong long-term growth prospects, although manufacturers integrated into global supply chains remain in an adjustment phase amid evolving policies and market conditions.