Warehouse and factory leasing firm PT SLP Surya Ticon Internusa (SLP) kicked off on Monday the expansion of its industrial cluster in Karawang, West Java, targeting high-end industrial clients for the world-class facilities.
'We are targeting those at the top of the pyramid. There is a big demand for fine warehouses, especially from Japanese companies,' SLP president director Soehartono Widjojo said during the groundbreaking of the second phase of industrial cluster Suryacipta Techno Park in Karawang on Monday.
SLP has appointed Soichi Takeda as its marketing director, who will target Japanese multinational companies, among others.
Soehartono said to meet international standard, the building would be 12 meters high, have a super flat floor and provide natural lighting as well as air circulation. The cluster will also have one-stop investment services to help clients open factories in the country.
SLP was established last April as a joint venture between three leading property companies: Local construction and developer Surya Semesta Internusa (SSIA), Japanese developer Mitsui Co. Ltd and Thai industrial estate developer TICON Industrial Connection plc.
The company's initial capital was Rp 600 billion (US$43.1 million), with a $25 million loan from Sumitomo Mitsui Banking Corporation. SLP is 50 percent owned by SSIA while the remaining half is shared equally between Mitsui and TICON.
The joint venture's first project was the development of Suryacipta Techno Park, a 22-hectare industrial cluster that is part of the 1,400 ha Suryacipta industrial area in Karawang. It has 16 warehouses that have been in operation since 2014, 75 percent of which are leased. Before being acquired by the joint venture, it was managed by SLP.
The company is building two more blocks in the cluster, comprising 12 warehouses measuring 2,300 square meters each and seven factories measuring 2,500 to 5,000 sq m each.
Total investment for the two blocks, around 52,000 sq m in size, is Rp 200 billion, excluding the land value, the company's data shows.
SLP is aiming for 80 percent of the 12 warehouses to be completed by July, to be ready for move-in by year-end. It will lease the units at a monthly rate of US$7.25 per sq m.
The factories, meanwhile, are expected to finish construction in September and will be leased for $7 per sq m monthly plus $1 per sq m for the additional empty space (docking area and others) outside the factory building.
The 22-ha Suryacipta Techno Park has allocated 150,000 sq m for lease.
'Besides this, we're also looking at other industrial regions, such as Cibitung [West Java], Marunda [North Jakarta] and Surabaya [East Java] to build international standard warehouses in the near future,' Soehartono said.
He added that SLP was also exploring the potentials for construction in Makassar, South Sulawesi and Palembang, South Sumatra.
'We are upbeat about the growth of the industry in Indonesia as depicted by the state's commitment to building more industrial estates outside Java and its initiatives in issuing policies that are pro-industry. When industry and trade do well, more warehouses will be needed,' he went on.
The government aims to have new 14 industrial estates built outside Java by 2019 to spur growth across the archipelago. It launched eight economic policies recently, aimed at boosting industry productivity and to ease investment.
Jones Lang LaSalle industrial and logistics consultant Nicholas Maclean said that modern warehouse leasing in Indonesia was not common despite the demand.
'[There will be] more of this type of development as there is a fundamental imbalance between supply and demand of modern logistics warehouses,' he said on Monday. (rbk)