Record Performance in Greater Jakarta’s Logistics Market
In 2025, the modern logistics market in Greater Jakarta achieved a remarkable milestone, with net absorption reaching an impressive 489,500 square meters. This figure marks the highest-ever annual take-up, surpassing the previous peak recorded in 2023. The robust performance reflects sustained demand from occupiers, particularly in the eastern corridor, which continues to be the most sought-after logistics belt.
Demand and Occupancy Trends
The primary demand was concentrated in the eastern corridor, while the Depok–Bogor area experienced relatively limited activity. Despite this, the overall market occupancy remained healthy, with vacancy rates tightening to 3.6% by the end of the year. Tenant inquiries were primarily driven by companies in the electronics, automotive, and food and beverage sectors. Notably, Chinese companies continued to play a significant role in the market. Occupiers showed a strong preference for facilities that offer assembly permits and operational flexibility, indicating a shift towards more adaptable and efficient logistics solutions.
Supply Side Developments
On the supply side, total new completions in 2025 reached approximately 220,500 square meters. This figure was slightly lower than the previous year due to delays in projects initially scheduled for fourth-quarter delivery. Nevertheless, the cumulative modern logistics stock in Greater Jakarta exceeded 3.1 million square meters. Two projects were completed during the quarter in Jakarta and Karawang, including a new multi-storey warehouse developed by Genesis in North Jakarta. This facility provides both dry storage for ambient goods and temperature-controlled space for frozen and chilled inventory, showcasing the growing need for specialized logistics infrastructure.
Rental Growth and Investment Activity
Rental growth remained modest but firm in 2025, supported by limited availability and strong demand for premium specifications. Prime projects located in strategic areas with retrofit flexibility achieved higher rents. For instance, Genesis reportedly commanded rates above IDR 100,000 per square meter for dry warehouse space. This trend highlights the increasing value placed on high-quality, flexible logistics facilities.
Investment activity in the market was largely driven by conglomerates diversifying into data centers, hotels, and residential assets. Additionally, Chinese funds entered the market to capitalize on manufacturing growth, while sovereign wealth funds explored partnerships and capital deployment opportunities. These developments indicate a growing interest in the region’s logistics sector from both domestic and international investors.
Future Outlook
Looking ahead, JLL anticipates that the eastern corridor will continue to lead new supply in 2026, followed by Tangerang. With relatively modest completions expected next year, total logistics stock is projected to reach around 3.4 million square meters, with vacancy rates remaining contained at about 5%. A more substantial supply wave is expected in 2027, which could potentially impact rental trends and occupancy levels.
Greater Jakarta’s established infrastructure base, stable economic conditions, rising foreign direct investment, and expanding manufacturing sector are expected to underpin continued logistics demand. At the same time, Special Economic Zones are emerging as attractive alternatives, offering incentives that further strengthen the region’s long-term investment appeal.
Key Factors Driving Growth
Several factors are contributing to the sustained growth of the logistics market in Greater Jakarta:
- Infrastructure Development: The region’s well-developed infrastructure supports efficient logistics operations, making it an attractive location for businesses.
- Economic Stability: A stable economic environment fosters confidence among investors and occupiers.
- Foreign Direct Investment: Increasing FDI is driving demand for logistics facilities, particularly in sectors such as manufacturing and e-commerce.
- Manufacturing Expansion: The growing manufacturing sector is creating a need for more advanced and flexible logistics solutions.
As the market continues to evolve, the focus on innovation, sustainability, and operational efficiency will likely shape future developments in Greater Jakarta’s logistics landscape.
