Japan-headquartered Itochu Corporation has announced that it has acquired an additional 105 hectares of land for development in Karawang International Industrial City (KIIC), developed and managed on the outskirts of Jakarta.
KIIC has been operated since 1992 as a joint venture by Itochu and Sinar Mas Group, an Indonesian conglomerate. Approximately 170 companies, mainly consisting of Japanese companies, are operating factories in a total existing area of 1,400 hectares. The park recently won the Indonesian government Ministry of Industry’s award for best industrial park.
Sales to Chinese, South Korean and Taiwanese companies have been made, in addition to Japanese companies. Leveraging the advantage of being able to provide stable infrastructure resistant to floods and other disasters, sales are also focused on operation risk-sensitive businesses (such as data centers, etc.). Although the work to clear the land is scheduled to be completed in the first half of 2023, some sections will be available for delivery to tenants before the completion of the park.
The cost of the expansion has not been disclosed but UDS 114.6 million is expected from the sale of land. KIIC has set offer prices of USD 190 to USD 200 per square meter of land, which is about 10% to 20% lower than land in an industrial park nearby.