c o l l i e r s i n t e r n at i o n a l | J A K ARTA

Industrial Market Report

M AR K ET O V ERV IE W | M AY | 2008

Property Market Overview

ECONOMIC INDICATORS
SUPPLY
From the expansion announced last year by several industri-
al estates, none was being done thus bringing the cumulative supply of
INDONESIAN
industrial ECONOMIC
land to remain INDICATOR
at 8,606 hectares. Last quarter, we only had the expansion of Modern
Cikande. 2004 2005 2006 2007 1Q08
Economic Growth (% YoY) 5.00 5.70 5.50 6.30 6.401
With continued demand for good locations and industrial estates with good infrastructure, the
Inflation Rate (%) 6.40 17.11 6.60 6.59 4.01 2

expansion plans from several industrial estates located in Bekasi region might take place this year.
Thus far, Bekasi
Exchange and Karawang were the two
Rate (Rp/US$) most prospective
8,934 9,695 areas for industrialists
8,980 9,124 to expand
9,243 or 2

open new industries.

Interest Rate - Central Bank Rate (%) 7.40 12.75 9.75 8.00 8.25 3

Notes:
1
RAPBN - P 2008 2
January - April 2008 3
May 2008
Source: Statistics Indonesia, Finance Department

INDUSTRIAL ESTATE SECTOR

SUPPLY
From the expansion announced last year by several industrial estates, none was being done thus
bringing the cumulative supply of industrial land to remain at 8,606 hectares. Last quarter, we
only had the expansion of Modern Cikande.
With continued demand for good locations and industrial estates with good infrastructure, the
expansion plans from several industrial estates located in Bekasi region might take place this year.
Thus far, Bekasi and Karawang were the two most prospective areas for industrialists to expand or
open new industries.

Supply remained flat with no
expansion plan
materializing within this quarter.
DEMAND
Good signs for the industrial market! The first quarter’s sales were about half of total sales in
2007. About 77% of the total sales in the six regions (Jakarta, Bogor, Tangerang, Karawang,
Bekasi and Serang) were concluded in the Bekasi region (around 58 hectares). Of the 58 hect-
ares, around 42% were done in MM2100 industrial estate. In the reviewed quarter, MM2100
was the star performer, booking a total of 24.7 hectares this quarter. In our record, every operat-
ing industrial estate in Bekasi region registered sales this quarter. In Karawang, industrial land
sales were stagnant, just like in the previous quarter. In our record only Suryacipta concluded
industrial land sales of around 9.6 hectares from another expansion of Kopi Kapal Api. Thus the
transaction by Kopi Kapal Api was the only transaction in Karawang in the reviewed quarter.

Logistics or warehouse companies were the most active industry concluding land
transaction in the quarter in several industrial estates like Greenland, MM2100, Bekasi Fajar,
Delta Silicon, KBN, Jakarta and Jababeka. A fairly large transaction made by a logistics and
warehouse company occurred in Bekasi Fajar of 3.89 hectares, involving a local steel-related
company as their expansion plan from Kapuk area. Additionally, Bekasi Fajar also received a
small transaction of around 0.45 hectare for logistics purposes. Two companies in Delta Silicon
purchased a total of around 5.29 hectares for logistics and warehouse purposes as well.

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Industrial Market Report | May | 2008 | Jakarta Quarterly Research Report

Demand surpassed
expectation in the early quarter
with a total transaction
involving more than 75 hectares.
The auto-related industry also continued
to expand in the quarter and this mostly
materialized in Bekasi region. Significant
transactions from auto-related companies
occurred in MM2100 from Astra group which
purchased land of around 4 hectares and Bekasi
Fajar from a Japanese company as part of their
expansion plan from Delta Silicon.
All in all, the largest transaction for this
quarter was finalized by the expansion
Mandom in MM2100 involving 14.8 hectares
land transaction. Another big transaction was
concluded by Delta Silicon from the purchase
of cabling and wiring manufacturer from
Japan of around 10 hectares. In Serang, three
INDUSTRIAL LAND TRANSACTIONS RECORDED IN 1Q08
companies bought a total of around 2.5
hectares land in KIEC. The three companies
are still associated with steel and other heavy
industries. So far, after 5 hectares sales in the
last quarter, Modern Cikande industrial estates
recorded zero sales this quarter but expecting
significant sales in the next quarter.
Thus far, there is no information on the land
sales reported in Bogor and Tangerang area.
In total, sales for this quarter were recorded at
around 75.05 hectares.

MM2100 Industrial Town

Delta Silicon

Suryacipta

Bekasi Fajar

Jababeka Industrial Estate

KBN Cakung

Krakatau Industrial Estate Cilegon

Greenland (Kota Delta Mas)

0.00 5.00 10.00 15.00 20.00 25.00

Source: Colliers International Indonesia - Research Department

ANNUAL INDUSTRIAL LAND SALES

Two estates introduced new asking
prices and maintenance costs. 300

250

200
hectares

150

100

50

-
2000 2001 2002 2003 2004 2005 2006 2007 1Q08

Source: Colliers International Indonesia - Research Department

2 Colliers International
 Industrial Market Report | May | 2008 | Jakarta Quarterly Research Report

CUMULATIVE SUPPLY, DEMAND AND TAKE-UP RATE

9,000 73%

8,000 66%

59%
7,000
52%
6,000

hectares
45%
5,000
38%
4,000
31%
3,000 24%

2,000 17%
2000 2001 2002 2003 2004 2005 2006 2007 1Q08

Cumulative Supply (ha) Cumulative Demand (ha) Take-up Rate (%)

Source: Colliers International Indonesia - Research Department

INDUSTRIAL LAND PRICES AND

MAINTENANCE COST
A price increase was reported to occur in the
quarter, one in Karawang (KIIC) and the other
in Serang (KIEC). The average land price
increase in Karawang was moderate while
significant improvement occurred in Serang
or up by 11.4%. Other adjustments for this
quarter were largely due to the volatility of the
exchange rate since some industrial estates still
introduced price in Rupiah and the average
calculation was in US$.

GREATER JAKARTA INDUSTRIAL LAND VALUE

$100.00
$90.00
$80.00
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$0.00
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08

Bogor Tangerang Karawang Bekasi Serang

Source: Colliers International Indonesia - Research Department

Colliers International 3
Industrial Market Report | May | 2008 | Jakarta Quarterly Research Report

INDUSTRIAL LAND PRICES AND MAINTENANCE COST

REGION LAND PRICE (/SQ M) MAINTENANCE COST (/SQ M/MONTH)

Lowest highest average lowest highest average
(Rp) (rp)
Bekasi Rp 400,000 Rp 750,000 Rp 597,905 US$ 0.05 US$ 0.07 Rp 592
Karawang Rp 300,000 US$ 50.00 Rp 379,753 US$ 0.05 US$ 0.06 Rp 489
Bogor US$45.00 Rp 650,000 Rp 580,923 US$ 0.06 Rp 600 Rp 566

Serang Rp 300,000 Rp 500,000 Rp 461,421 Rp 220 Rp 300 Rp 269

Transactions from logistics
and warehouse companies Tangerang Rp 600,000 Rp 1.26 mill Rp 614,769 US$ 0.04 Rp 1,000 Rp 530
were dominant this quarter.
Source: Colliers International Indonesia - Research Department

GREATER JAKARTA AVERAGE MAINTENANCE COST

$0.08

$0.07
$0.06

$0.05
$0.04
$0.03
`
$0.02

$0.01
$0.00
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08

Bogor Tangerang Karawang Bekasi Serang

Source: Colliers International Indonesia - Research Department

Apart from introducing new

asking land prices, KIIC also moved the
m a i n t e n a n c e c o s t u p -
w a r d t h i s q u a r t e r. Wi t h n e w
maintenance cost of US$0.06/
s q m / m o n t h , K I I C l e d
compared to other in-
dustrial estates in the region
(Karawang) which quotes US$0.05/
sq m/month respectively. The main-
tenance cost in KIEC (which also in-
troduced new land price) also moved
gently from US$0.02/sq m/month
last quarter to Rp300/sq m/month or
equivalent to US$0.03/sq m/month. With
this new maintenance cost, KIEC quoted the
highest tariff compared to other industrial
estates in Serang.

4 COLLIERS INTERNATIONAL

OUTLOOK
The industrial sector demonstrated a
positive sign in the early year with
sizeable land sold. With more than 50%
sales in the first quarter compared to
total land sold for the whole of 2007, the
overall sales for this year are likely to
accelerate. However, amid the fear on
the impact of the government’s plan
to increase oil prices, industrialists are
also anticipating the soaring price of
commodity and high inflation rate which
could destabilize the sound projection.
For the last couple of years,
i n d u s t r i a l t r a n s a c -
tions were largely driven by
existing operating tenants who expand-
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Industrial Market Report | May | 2008 | Jakarta Quarterly Research Report
ed their operations. Therefore, we still
believe that a large number of
future transactions will come from the
expansion of existing tenants within the
industrial estate or to other industrial
estates. There will be also, albeit
small, the relocation activities from
one industrial estate to the other
estate. New industries that we re-
corded were mostly old owners/
industrialists which diversified their
business and need new industrial
land for their separate operations.
293 offices in 61 countries on 6
continents
USA 99 
Canada 19
Latin America 18 
Asia Pacific 62 
EMEA 95 
$2.0 billion in annual revenue
868 million square feet under management
15,573 Professionals
Contact information
INDONESIA
Colliers International Indonesia
World Trade Centre 10th floor
Jalan Jenderal Sudirman Kav 29 - 31
Jakarta 12920
Tel: 62 21 521 1400
Fax: 62 21 521 1411
RESEARCHER:
Ferry Salanto
Manager Research
Colliers International Indonesia
World Trade Centre 10th floor
Jalan Jenderal Sudirman Kav 29 - 31
Jakarta 12920
Tel: 62 21 521 1400
Fax: 62 21 521 1411
This report and other research materials may be found
on our website at www.colliers.com. Questions related
to information herein should be directed to the Research
Department at the number indicated above. This document
has been prepared by Colliers International for advertising
and general information only. Colliers International makes
no guarantees, representations or warranties of any kind,
expressed or implied, regarding the information including,
but not limited to, warranties of content, accuracy and
reliability. Any interested party should undertake their own
inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied
terms, conditions and warranties arising out of this document
and excludes all liability for loss and damages arising there
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