Jakarta, INTI - Industrial land prices in Cikarang, Bekasi Regency, West Java, reached IDR 3.5 million per square meter in the third quarter of 2026. The increase has been driven partly by growing investment interest in data centers, which are increasingly viewed as a high-value industry.

Anton Sitorus, Head of Research & Consulting at CBRE Indonesia, said rising demand for data center sites has contributed to higher land prices in the industrial area. According to CBRE Indonesia, industrial land prices in Cikarang were still around IDR 3 million per square meter in 2025.

“The sharp increase is not driven solely by conventional industries, but also by data centers. Their presence has encouraged investors to pay higher prices for land,” Anton said during CBRE Indonesia’s Jakarta Property Market Update Q3 2026 at its Jakarta office on Wednesday, October 28, 2026.

According to Anton, the increase reflects investors’ perception of data centers as a high-value industry. Meanwhile, demand from other industrial sectors, including pharmaceuticals and consumer goods, has also remained resilient.

Greater Jakarta Industrial Land Prices Reach IDR 2.6 Million per Square Meter

CBRE Indonesia reported that average industrial land prices across Greater Jakarta, covering Jakarta, Bogor, Depok, Tangerang, and Bekasi, reached approximately IDR 2.6 million per square meter in the third quarter of 2026.

During the same period, industrial land inventory in Greater Jakarta stood at 15,600 hectares, while net absorption reached 59 hectares.

Looking ahead, approximately 1,400 hectares of additional industrial land are projected to become available across the region. However, new industrial developments are expected to expand beyond traditional investment destinations.

“Locations are increasingly moving farther out, toward Subang, Jatiluhur, and Central Java,” Anton said.

Indonesia Targets Higher Data Center Capacity

Growing demand for industrial land is also linked to Indonesia’s plans to expand its data center capacity. Communications and Digital Affairs Deputy Minister Nezar Patria previously stated that the country’s existing data center capacity stood at approximately 580 megawatts (MW), with a target of reaching 1.3 gigawatts (GW) in 2027–2028.

Nezar noted that Indonesia’s data center capacity remains below Malaysia’s, which has reached approximately 3 GW. Expanding capacity is necessary to support the digital economy, alongside appropriate planning to ensure sustainable industry growth.

“Indonesia has a larger population than Malaysia and the largest population in Asia. Therefore, we need to organize and establish safeguards for data center development to ensure the industry can grow properly in the future,” Nezar said at BTW 2026 on Thursday, October 22, 2026.

Rising Demand for Land, Electricity, and Water

Growing investments in data centers and artificial intelligence (AI) are prompting industrial estate operators to prepare supporting infrastructure.

Sanny Iskandar, Chairman of the Advisory Board of the Indonesian Industrial Estates Association (HKI), said rising investor interest in data centers has increased demand for industrial land, electricity, and water.

“Based on the investment interest within industrial estates, demand for data centers is increasing, leading to higher requirements for land, electricity, and water,” Sanny told Bisnis, as quoted on Wednesday, September 2, 2026.

This trend aligns with Cushman & Wakefield’s H1 Asia Pacific Data Center report, which identifies Greater Jakarta and Karawang as established data center markets in the Asia-Pacific region, alongside Shanghai, Kuala Lumpur, and Bangkok.

Sanny said industrial estate operators are working to meet investor requirements by providing essential infrastructure, particularly land, electricity, and water supplies.

“Industrial estate operators continue to work on providing the facilities needed to support data centers, particularly land, electricity capacity, and water, especially considering that these facilities generally require more electricity and water than other industries operating within industrial estates,” he said.

The substantial resource requirements present challenges for industrial estate operators. To address these issues and promote sustainability, operators are encouraging the adoption of cooling technologies and the development of alternative water sources.

“We continue to support technological developments that can improve data center cooling systems, as well as alternative water sources,” Sanny said.

Beyond infrastructure, the competitiveness of industrial estates in attracting data center and AI investments also depends on government policy. Sanny highlighted consistent and attractive regulations, ease of doing business, legal certainty, and security as important factors.

The availability of workers with the skills and expertise required by the data center and AI industries is another consideration.

Industry Ministry Proposes Requiring Data Centers to Operate Within Industrial Estates

Meanwhile, the Ministry of Industry has proposed revising a ministerial regulation to require data centers to be built within designated industrial estates.

The proposal aims to better organize investment while addressing the substantial electricity and water requirements of data center operations.

Deputy Minister of Industry Faisol Riza said data centers play an important role in supporting industrial activities and economic growth. However, their resource requirements must be managed to prevent disruptions to supplies for the public.

“We are currently proposing an amendment to the Minister of Industry’s regulation that would require data centers to be located within industrial estates,” Faisol said on the sidelines of the 2026 National Coordination Meeting on Investment, Downstream Industries, Energy, and the Environment, organized by the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) at The Langham in South Jakarta on Tuesday, October 13, 2026.

Faisol emphasized that electricity and water availability are critical considerations in planning data center investments. The government needs to account for these requirements to ensure industrial development continues without compromising resource availability for communities.

“Data centers are important for industry and serve as a driver of economic growth. We have also received reports from numerous ministries, government agencies, and state-owned enterprises highlighting the substantial energy requirements, particularly electricity and water,” he said.

He added that input from state-owned electricity company PT PLN (Persero), ministries, and relevant institutions would be necessary to manage the energy and water needs of the data center industry.

The growing investment interest in data centers is reshaping demand in Cikarang’s industrial property market. At the same time, the availability of land, electricity, water, and skilled labor will remain critical to supporting Indonesia’s data center and AI expansion.

Conclusion

Rising data center investment is driving industrial land prices higher in Cikarang, while increasing demand for electricity, water, and supporting infrastructure. As Indonesia targets greater data center capacity, industrial estate planning, resource management, and consistent regulations will play an important role in supporting sustainable growth. 

Read more: DSSA Acquires IDR 3.1 Trillion Worth of Land to Support Data Center Expansion