Two Grade A logistics and industrial facilities in Greater Jakarta will be developed under a partnership between real asset owner and manager ESR and Mitsubishi’s wholly-owned subsidiary MC Urban Development Indonesia (MCUDI).

Construction has begun, with completion targeted for the third quarter of 2027.

The institutional-grade assets, with a total expected asset value of more than US$80 million ($103.3 million), will be located in Karawang and Cikarang — two established and in-demand industrial submarkets in Indonesia, the firms said in a joint announcement on July 7.

Karawang Logistics and Industrial Hub will comprise a three-block, single-storey facility within the Suryacipta industrial estate.

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Developed on a freehold site spanning about 100,000 sq m (1.08 million sq ft) in land area, the project in Karawang will deliver close to 63,000 sq m of leasable area. It aims to target growing demand from multinational third-party logistics and manufacturing customers.

The site has direct access to the Jakarta-Cikanpek toll road, with enhanced future connectivity via the Jakarta-Cikampek II south toll road.

The other upcoming property is Cikarang Logistics and Industrial Hub, within the Jababeka industrial estate. A two-block, single-storey facility will rise on a 68,000 sq m freehold site and deliver more than 48,000 sq m of leasable area.

The Cikarang property will cater to multinational logistics, e-commerce and manufacturing customers, supported by transport linkages across the Jakarta-Cikampek toll road network, according to the announcement.

Both properties will be designed and built by Japanese contractors, incorporating modern fire safety, seismic-compliant design, and sustainable features. The developments will also adopt a “human-centric design approach” to improve energy efficiency and support worker well-being, the announcement added.

ESR head of Southeast Asia, Jai Mirpuri, said: "This investment reflects ESR’s asset-light strategy and focus on Asia Pacific markets with clear demand visibility and strong partner alignment."

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The latest joint development agreement is the second phase of ESR and MCUDI's strategic partnership in Indonesia. They had earlier delivered and leased out three projects: Karawang Logistics Park 1, and Cikarang Logistics Parks 1 and 2.

MCUDI’s incoming president director, Hideaki Nakajima, said the two companies are expanding their collaboration and investment in warehousing projects in Indonesia "by combining our local capabilities with our accumulated know-how and network in Japan, alongside ESR’s fund management and development expertise".

Mirpuri of ESR noted that the partners are scaling institutional-grade logistics and industrial developments in strategic Greater Jakarta locations where supply remains "structurally constrained".

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