Singapore-based real asset manager ESR, Indonesia Investment Authority (INA), and other capital partners are jointly investing in the development of two institutional-grade logistics facilities in Cikarang, Greater Jakarta, expanding their partnership and supporting Indonesia’s long-term logistics, manufacturing, and supply chain development.
A groundbreaking ceremony, held on Tuesday, marked the start of development for ESR Cikarang Logistics Park 4, a Grade A logistics and industrial facility within Jababeka Industrial Estate, a key manufacturing and logistics hub, the duo said in a statement.
When completed in 2027, the facility will be the largest non-captive modern warehouse in the Jababeka area, and will target demand from global and regional third-party logistics operators as well as multinational manufacturing companies seeking proximity to key industrial clusters and supply chain networks.
The investment also includes ESR Cibitung Distribution Hub, a Grade A three-storey logistics development, which will be completed in 2028.
Located within the established MM2100 Industrial Town in Cikarang, Bekasi Regency, the facility will cater to customers seeking modern, purpose-built space for regional distribution and manufacturing operations.
Located in Greater Jakarta’s eastern industrial corridor, the two developments are situated within Indonesia’s established manufacturing and logistics clusters.
The investment will expand the supply of modern logistics infrastructure to support the country’s continued industrial development and increasingly sophisticated supply chains.
Indonesia’s freight and logistics market is expected to exceed US$188 billion by 20311, supported by e-commerce demand, rising manufacturing exports, and growing domestic consumption.
“We are pleased to grow our relationship with INA in Indonesia, having delivered a successful exit for them in this market recently. Indonesia is one of Southeast Asia’s most attractive markets, underpinned by strong fundamental growth drivers,
“We continue to see strong demand in the market from customers in both the manufacturing and logistics sectors, and these new facilities in Greater Jakarta have been designed to meet their evolving needs,” said Jai Mirpuri, Head of Southeast Asia, ESR.
According to him, these developments are well positioned to capture demand from customers seeking larger, higher-specification assets in strategic logistics hubs, with features that support automation, operational efficiency, and sustainability.
Oki Ramadhana, Chief Executive Officer of INA, said that since establishing our partnership with ESR in 2023, they have continued to deepen our collaboration in Indonesia.
“Strategically located in two leading industrial estates in the Eastern Corridor of Greater Jakarta, these developments represent a strategic investment in Indonesia’s underpenetrated modern warehouse market and reflect our shared conviction in its long-term potential,” he said.
According to him, the outlook for modern warehouses remains strong, driven by the nearshoring of manufacturing activities (the relocation of production closer to key markets), rising e-commerce penetration, and continued industrialization.
“ESR’s deep sector expertise and proven execution across the full asset lifecycle provide a strong foundation for delivering well-positioned, high-quality facilities that respond to these evolving needs. Together, we aim to strengthen the infrastructure that supports Indonesia’s industrial growth,” he added.
The two new assets will be developed to high technical standards, featuring elevated clear heights and enhanced floor-loading capacities to support advanced automation and evolving customer requirements.
The facilities will also incorporate energy-efficient design features, including natural lighting and ventilation, provisions for onsite renewable energy generation, and fire protection systems aligned with leading industry standards.
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