Asia-Pacific real asset manager ESR and the Indonesia Investment Authority (INA) will jointly invest in two logistics facilities, as the real estate manager expands its logistics portfolio in the archipelago.
The projects, ESR Cikarang Logistics Park 4 and ESR Cibitung Distribution Hub, are being developed in Cikarang, Greater Jakarta, with the former expected to be completed in 2027 and the latter in 2028.
ESR Cikarang Logistics Park 4, located in the Jababeka Industrial Estate, held its groundbreaking ceremony on Tuesday (Aug. 11). The Grade A facility is expected to become the largest non-captive modern warehouse in Jababeka when complete, according to a statement by the companies.
The second project, ESR Cibitung Distribution Hub, is a three-storey Grade A facility in MM2100 Industrial Town. It is designed to serve manufacturing and regional distribution customers, with operations targeted for 2028.
The companies did not disclose the investment value of the two projects.
“The development of new facilities in Greater Jakarta has been designed to meet growing needs,” Jai Mirpuri, head of Southeast Asia at ESR, said in the statement.
Mirpuri said ESR continues to see demand from manufacturing and logistics customers for larger assets with higher specifications, including features supporting automation, operational efficiency, and sustainability.
The developments are part of an expanded collaboration between ESR and INA, which have been working together since 2023. The projects are located along the eastern industrial corridor of Greater Jakarta, where logistics and manufacturing activity has expanded in recent years.
Oki Ramadhana, chairman of INA’s board of directors, said the two sides have “continued to strengthen our collaboration in Indonesia” since forming the partnership.
The latest investment comes about a month after ESR announced another expansion of its Indonesian logistics portfolio.
On July 7, ESR and PT MC Urban Development Indonesia (MCUDI), a wholly-owned subsidiary of Mitsubishi Corporation, agreed to jointly develop two logistics and industrial facilities in Karawang and Cikarang. The projects have a combined expected asset value of more than $80 million and will provide about 111,000 square metres of Grade A leasable space. Construction had already begun, with completion targeted for the third quarter of 2027.
That deal marked the second phase of ESR and MCUDI’s broader strategic partnership and followed three earlier projects—Karawang Logistics Park 1 and Cikarang Logistics Parks 1 and 2.
The ESR-INA-MCUDI relationship dates back to May 2023, when the three parties agreed to invest in three logistics parks developed and managed by ESR in Cikarang and Karawang. At the time, the parties said they were also exploring further joint investments in the sector.
