Industrial Estates Become The First Sector To Rise In 2021, Thanks To The Existence Of Patimban Port?

Illustration. (Photo: Unsplash)

JAKARTA - The COVID-19 pandemic has depressed almost all business sectors. Currently, business sectors in the world, including Indonesia, are trying to revive themselves even though the pandemic is not over. Property Consultant Colliers International Indonesia (CII) predicts that the first sector will rise first is the industrial sector.

Ferry Salanto, Senior Associate Director of Research at Colliers International Indonesia, explained that the industrial sector was the first to rise because of the current rampant industrial estate development.

The government is also working on building new industrial areas. One of them, in the vicinity of the Patimban Port area, which is considered to be a potential for the rise of industrial estates.

"If we see, the industrial estate market will be the first sector to rise (in 2021), because of its great potential, related to the distribution of goods, production of goods. Subang will become a new industrial area with the operation of the Patimban Port. Especially now that the economy is improving. , "he said, in a virtual discussion, Wednesday, January 6.

The types of industries that support the growth of this sector are still related to Information Technology (IT), such as data centers, because they will continue to expand. Apart from data centers, e-commerce will also support industrial estates, because they require warehouses and become distribution centers.

Interestingly, the technology-based automotive industry such as electric vehicles will also grow. "What is consistent and not affected by the COVID-19 pandemic is the food industry because it is a basic necessity that continues to be needed, consumer goods, chemicals, and health also support other industries," he said.

According to Colliers International Indonesia's data recapitulation in 2020, the automotive industry dominates the industrial estate by 34 percent. Then, followed by the food industry with 22 percent, data centers at 11 percent, oil and gas at 6 percent.

Furthermore, the chemical industry, warehousing or logistics, and others each account for 4 percent. Then, the textile industry, building materials, electronics, plastics as much as 2 percent and the most important is medical only contributing 1 percent.

Of the total industrial area absorbed throughout 2020, Greenland International Industrial Center (GIIC) dominated sales by 60 percent.

During the COVID-19 pandemic, activity in the industrial sector was minimal. The offering price for industrial land in general was corrected by 4.1 percent, even though there were still new land clearing during 2020 with a total of 153 hectares (ha).

In addition, the landed house sector is predicted to rise the fastest. This is different from property in the office sector, which is considered to take longer to recover.

"Even though we don't cover here, there is a tendency that landed houses will become a hot sector, which is quite enthusiastic because it relates to the basic needs of many people. For commercial purposes such as offices, it still takes time because it is related to corporations," he said.

The landed house sector is considered to be able to recover quickly because currently it is easier to purchase housing facilities, such as housing loans (KPR). Ferry said that the recovery of this sector is considered only a matter of waiting for certainty of future economic recovery.