Industrial Estates in Indonesia: Find, Secure and Build
Our industrial estate Indonesia advisory helps manufacturers and investors find industrial land, check it properly, get it approved and build on it.
We work from the first site search to a finished factory, with design and build through our construction partner, TSG.
What We Do
Industrial companies in Indonesia are generally required to locate inside an industrial estate (kawasan industri). The rule comes from Article 106 of the Industry Law, as amended by the Job Creation Law. Exceptions apply where a regency has no estate or no plots left, for some small and medium industries, and for industries that need a special location or raw materials.
That makes the choice of estate one of the first and most important decisions in a manufacturing project. Indonesia has around 180 industrial estates: the Ministry of Industry counted 179 in June 2026, covering about 101,350 hectares and home to 11,970 tenants, with 106 of them on Java.
We help you find, assess and secure the right one, whether you need a single lot or a whole estate.
Lots in established estates
Serviced industrial land with roads, power and estate management in place. The most common route for a new factory.
Ready-built factories and warehouses
Leasing or buying an existing building when speed matters more than a custom design.
Larger sites
Bigger parcels for heavy industry, phased expansion or projects that need a particular location.
Industrial estate acquisition
Buy-side advisory for investors acquiring an estate, a stake in one or a land bank, alongside your legal and financial advisers.
Where Industry Is Growing
Bekasi–Karawang corridor
East of Jakarta, the busiest industrial land market in Greater Jakarta. CBRE reports Cikarang as the most expensive submarket at about IDR 3.6 million per m² in Q2 2026, with data center operators taking more than 100 hectares in the first half of the year.
Central Java
Larger, newer zones including KEK Industropolis Batang, designated a special economic zone in 2025, and KEK Kendal, run by Jababeka with Singapore’s Sembcorp.
Batam
A free trade zone (KPBPB) next to Singapore, and a growing hub for both manufacturing and data centers.
Special economic zones
Indonesia has 25 KEKs, 13 of them industrial. KEK businesses can receive corporate tax reductions, VAT relief on certain deliveries and import duty facilities, and KEK administrators can issue licences directly in OSS.
The best location depends on your supply chain, your customers, labour and power. We compare estates on those terms, not on the brochure.
Due Diligence
Industrial land in Indonesia can look ready on paper and still hold problems in the title, the zoning or the utilities. We check each site with your legal advisers before you commit.
- Title: a foreign-owned PT PMA can hold Hak Guna Bangunan (HGB), the right to build. On state land or an estate operator’s management right (HPL), HGB runs for 30 years, extendable by 20 and renewable for 30. On HPL land, extension and renewal need the HPL holder’s approval. We check the remaining term, the holder and any encumbrances at the BPN land office.
- Zoning: confirming the site suits your activity under the regional spatial plan, and the spatial approval (KKPR) it will need.
- Utilities: PLN power capacity and connection timing, water supply, wastewater treatment and gas where needed.
- Access and logistics: toll roads, ports, airports and the route your goods will take.
- Estate rules and environment: the estate’s own regulations, service charges and environmental approval. In estates with an estate-wide environmental approval, tenants prepare their own environmental management and monitoring plans.
- Labour and community: local workforce, wage levels and the estate’s relationship with surrounding communities.
Approvals
Most foreign manufacturers operate through a PT PMA, a foreign investment company licensed through the national OSS system run by the Ministry of Investment and Downstream Industry/BKPM. Our foreign investment guide covers company setup.
Since June 2025, Government Regulation 28/2025 has set the rules for risk-based licensing. It extended service deadlines, and deemed approval when an agency misses them, to environmental and building approvals, and cut the number of supporting licences from 1,006 to 357. Indonesia’s 2025 business classification (KBLI 2025) has also replaced KBLI 2020 in OSS, so activity codes need checking.
- 1
Company and NIB
Set up the PT PMA and obtain a business identification number (NIB) in OSS for the right KBLI codes.
- 2
Spatial approval (KKPR)
Confirm the site suits the activity. Environmental approval cannot be issued without it.
- 3
Environmental approval
Screening in Amdalnet decides whether you need an AMDAL, a UKL-UPL or an SPPL.
- 4
Building approval (PBG)
Approval of the building design before construction, processed through the SIMBG system.
- 5
Certificate of worthiness (SLF)
Confirms the finished building matches its approval and is fit to use. Without PBG and SLF, the business licence cannot be used.
Our government relations team coordinates these approvals with the agencies involved, at central and regional level.
Design and Build With TSG
Once the land and approvals are in place, we bring in our construction partner, PT TSG Construction Indonesia. Factory design and build is TSG’s core business: it has 20 years of industrial design-and-build work in China, reports more than 380 completed projects, and has operated in Indonesia since 2024.
TSG works as an EPC contractor, covering engineering, procurement and construction under one contract, followed by two years of maintenance. It builds to Indonesian (SNI), Japanese (JIS) and Chinese (GB) standards, with BIM used across design, construction and handover.
Machinery components factory, Indonesia
30,000 m², built in 9 months. TSG’s Indonesian benchmark project.
Automotive parts factory, Japan
28,000 m², built in 10 months for a Japanese-owned manufacturer.
Food-grade factory, Japan
22,000 m², built in 8 months to HALAL and FDA food-safety standards.
Electronic component factory, India
35,000 m², built in 12 months for export manufacturing.
Project figures are as TSG reports them in its company profile.
How We Work
- 1
Brief
Your product, process, floor area, power and water needs, timeline and preferred regions.
- 2
Shortlist
We compare estates and sites on location, title, utilities, cost and incentives.
- 3
Due diligence
Title, zoning, utility and estate checks with your legal advisers.
- 4
Secure the site
We support negotiation through to purchase or lease, and company setup if needed.
- 5
Approve and build
We coordinate approvals and design and build with TSG through to handover.
Frequently Asked Questions
Can a foreign company own industrial land in Indonesia?
A foreign-owned PT PMA can hold Hak Guna Bangunan (HGB) title. On state land or an estate operator’s management right (HPL), HGB runs for 30 years, extendable by 20 and renewable for 30. HGB over privately owned (Hak Milik) land runs for 30 years and can be renewed only by agreement with the owner.
Does my factory have to be in an industrial estate?
Generally, yes. Under the Industry Law, industrial companies must locate in an industrial estate, with exceptions: where the regency has no estate or no plots available, for some small and medium industries, and for industries needing a special location or raw materials. Excepted companies must still locate in a zone designated for industry.
What is a KEK?
A Kawasan Ekonomi Khusus, or special economic zone. Indonesia has 25. Businesses inside can receive corporate income tax reductions, VAT relief on certain deliveries and import duty facilities, and licences can be issued directly through the KEK administrator in OSS.
Should we buy or lease?
It depends on how long you plan to stay, your capital plans and the estate. Leasing a ready-built factory is faster; buying land and building gives you a facility designed for your process. We set out the costs and timing of both.
How long does it take to build a factory?
It depends on size, complexity and approvals. As a reference point, TSG reports building a 30,000 m² machinery components factory in Indonesia in 9 months. Approvals and site preparation come first and need their own time.
Can you help us acquire an entire industrial estate?
Yes. For investors we provide buy-side advisory on estate and land-bank acquisitions: title and permit due diligence, utility capacity, tenant base and government process, working alongside your legal and financial advisers.
Related Advisory Services
Data Center Development
Site acquisition, PLN power planning and approvals for data center, colocation and AI compute projects.
Government Relations
Structured, documented engagement with central ministries and regional government on permits, land and investment approvals.
Foreign Investment & BKPM
PT PMA setup, OSS licensing and working with BKPM investment facilitation for foreign investors entering Indonesia.
Looking for Industrial Land in Indonesia?
Tell us what you make, how much space you need and where. We’ll tell you what we’d look for and how we can help.
Contact Our TeamSources (checked 27 October 2026)
- Government of Indonesia (Wikisource scan), “Law 11/2020 (Job Creation), amending Article 106 of Law 3/2014 on Industry”, 2 November 2020.
- JDIH Kemenko Infrastruktur, “PP No. 20 Tahun 2024 tentang Perwilayahan Industri”, 7 May 2024.
- detikFinance, “Kawasan Industri RI Makin Ramai, Investasi Tembus Rp 6.744 Triliun”, 29 June 2026.
- IQPlus via BCA Sekuritas, “Indonesia Tawarkan 180 Kawasan Industri ke Investor Rusia di INNOPROM 2026”, 10 July 2026.
- DDTCNews, “Investasi di KEK Capai Rp382 Triliun, Airlangga: Serap 302.000 Pekerja”, 21 October 2026.
- Ministry of Finance JDIH, “33/PMK.010/2021 – Summary (KEK tax, customs and excise facilities)”, 1 April 2021.
- DDTCNews, “Kawasan Industri Batang Jadi KEK, Investasi Ditarget Rp74 Triliun”, 18 April 2025.
- Kontan, “Jababeka dan Singapura Perluas KEK Kendal”, 19 May 2026.
- CBRE Indonesia, “Greater Jakarta Industrial Estate Figures Q2 2026”, 26 August 2026.
- Nusantara Legal Partnership via Mondaq, “Land & Property Ownership and Utilization in Indonesia (Vol. 1)”, 20 March 2023.
- SSEK Law Firm, “Indonesia Overhauls Risk-Based Business Licensing with Government Regulation No. 28 of 2025”, 15 August 2025.
- Allen & Gledhill, “Indonesia’s GR 28/2025: Faster licences, clearer rules for businesses”, 16 July 2025.
- Hukumonline, “Penting! Ini yang Perlu Diperhatikan dalam Proses Pengajuan KKPR Sesuai PP 28/2025”, 23 July 2025.
- Hukumonline, “Mengenal Ulang Persetujuan Lingkungan dan Amdalnet Pasca Terbitnya PP 28/2025”, 22 October 2025.
- BP Lawyers, “Pentingnya PBG dan SLF”, 10 November 2025.
- DDTCNews, “KBLI 2025 Resmi Dipakai untuk Perizinan, Pelaku Usaha Perlu Tahu Ini”, 19 June 2026.
- PT TSG Construction Indonesia, “Company profile”, March 2026.
This page is general information, not legal, tax or investment advice. Indonesian regulations change often. We confirm current requirements for each project with licensed Indonesian legal and tax advisers, and no outcome, approval or timeline is guaranteed.