Subang Karawang industrial land is attracting strong investor interest due to its strategic location and expanding infrastructure. As demand for industrial space in Greater Jakarta rises, these regions have emerged as key players in Indonesia’s industrial growth. Government support and improving connectivity further enhance their appeal, making them prime choices for industrial investment.
Rising Demand for Subang Karawang Industrial Land
Investor demand for Subang and Karawang continues to grow. According to Knight Frank Indonesia, industrial land in these areas absorbed 50% of the total land supply in Greater Jakarta during the second half of 2024.
“From the catchment area we identified, we found that Subang, Bekasi, and Karawang became submarkets with the highest land absorption at the end of 2024,” said Syarifah Syaukat, Senior Research Advisor at Knight Frank Indonesia, as reported by detik.com.
Subang is not a new industrial hub, but recent expansions and government initiatives have fueled its rapid growth. Karawang and Bekasi, developed since the 1980s, remain industrial hotspots due to their well-established ecosystems and consistent investor confidence.
Government Initiatives and Infrastructure Development
The Indonesian government has taken significant steps to enhance industrial infrastructure in Subang and Karawang. One key project is Patimban Port, which has started operations, providing a major logistics boost.
“We also see that the access opened by the government for Subang, such as the Patimban Port, which has started operations, is one of the advantages that allows Subang to compete with Greater Jakarta in managing its industrial area,” said Syarifah.
In addition to Patimban Port, the development of new toll roads and transportation networks has improved connectivity. These infrastructure projects make it easier for businesses to transport goods efficiently, reducing operational costs and increasing competitiveness.
Competitive Industrial Land Prices in West Java
Compared to other industrial zones in Greater Jakarta, Subang and Karawang offer competitive land prices. As of early 2024, the average industrial land price in Subang is IDR 2.05 million per square meter, while in Karawang, it reaches IDR 2.525 million per square meter. In contrast, industrial land in Bogor is priced at IDR 7 million per square meter, making Subang and Karawang more cost-effective options.
Lower land costs, combined with strategic locations and strong infrastructure, attract both local and international investors. These factors make Subang and Karawang highly desirable for companies seeking expansion opportunities in Indonesia’s growing industrial sector.
Key Industries Driving Growth in Subang and Karawang
Several industries are fueling the expansion of Subang and Karawang’s industrial zones. Three major sectors leading the demand are automotive, data centers, and FMCG (Fast-Moving Consumer Goods).
“The automotive sector is currently the largest land absorber. In addition, data centers have also been actively absorbing land in Greater Jakarta over the past three years,” said Syarifah.
The presence of established industrial ecosystems further strengthens the investment potential. Subang alone hosts approximately 10,000 industrial ecosystems, creating a thriving environment for new businesses.
“Subang has around 10,000 existing industrial ecosystems, so it is not a new area for industrial development. However, it is quite promising and can compete with Greater Jakarta,” added Syarifah.
Future Outlook for Subang Karawang Industrial Land
The long-term outlook for Subang Karawang’s industrial land remains positive. With ongoing infrastructure improvements, government incentives, and increasing investor interest, these areas are set to play a crucial role in Indonesia’s industrial sector.
“In the first half of 2024, land sales recorded the highest figures in the past five years. About 43% of the total absorbed land is located in Karawang and Bekasi,” noted Syarifah.
As industrial expansion continues, Subang and Karawang offer businesses a unique combination of affordability, accessibility, and industrial support. Investors looking for high-growth opportunities should consider these prime locations before land prices rise further.
Source: detik.com
Image: Bisnis/Himawan L. Nugraha