ESR, a Singapore-based real asset owner and manager, and PT MC Urban Development Indonesia (MCUDI), a wholly owned subsidiary of Mitsubishi Corporation, have entered into a joint development agreement to develop two institutional‑grade logistics and industrial facilities in Greater Jakarta.
The partnership will develop two Grade A logistics and industrial facilities in Karawang and Cikarang – two of Indonesia’s most established and in demand industrial sub markets – with a total expected asset value of over $80 million, ESR said in a statement on Tuesday.
Leveraging their respective strengths, the partners aim to maximize asset value. Construction has commenced, with completion targeted for the third quarter of 2027.
This marks the second phase of ESR and MCUDI’s broader strategic partnership in the country and builds on the successful delivery and leasing of three earlier projects – Karawang Logistics Park 1, as well as Cikarang Logistics Parks 1 and 2 – collectively demonstrating strong customer demand.
Both assets will be designed and built by Japanese contractors to meet ESR and MCUDI’s standards, incorporating modern fire safety, seismic-compliant design, and sustainable features, such as LED lighting, FRP skylights, and provisions for solar panel installation.
The developments also adopt a human-centric design approach to enhance energy efficiency and support worker well-being.
“This investment reflects ESR’s asset-light strategy and focus on Asia Pacific (APAC) markets with clear demand visibility and strong partner alignment. Following the success of our initial collaboration, we are scaling institutional‑grade logistics and industrial developments in strategic Greater Jakarta locations where supply remains structurally constrained,
“We are pleased to deepen our partnership with MCUDI to deliver modern, high-quality assets that support the increasingly sophisticated requirements of logistics, manufacturing, and supply chain customers,” said Jai Mirpuri, Head of Southeast Asia, ESR.
Hideaki Nakajima, incoming President Director of MCUDI, added they look forward to expanding their collaboration and investment with ESR in warehousing projects in Indonesia by combining their local capabilities with our accumulated know-how and network in Japan, alongside ESR’s fund management and development expertise.
“Together, we are well positioned to deliver institutional-grade assets that meet the evolving needs of global and domestic customers across Greater Jakarta,” he added.
Karawang Logistics and Industrial Hub will comprise a Grade A single-story, three-block facility within the Suryacipta industrial estate, developed on an approximately 100,000 sqm freehold site.
The project will deliver close to 63,000 sqm of leasable area, targeting growing demand from multinational third party logistics and manufacturing customers.
The site benefits from direct access to the Jakarta-Cikampek toll road, with enhanced future connectivity via the Jakarta-Cikampek II south toll road.
Cikarang Logistics and Industrial Hub, located within the established Jababeka Industrial Estate, will be a two-block, single-storey Grade A facility developed on an approximately 68,000 sqm freehold site, delivering over 48,000 sqm of leasable area.
It will cater to multinational logistics, e-commerce, and manufacturing customers, supported by strong transport linkages across the Jakarta-Cikampek toll road network, said the statement.