Industrial estate: Subang accelerated by Patimban project
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Kawasan industri: Subang terakselerasi proyek Patimban
12 May 2023
By: Afifah Rahmah Nurdifa
The construction of Patimban Port in Subang Regency in West Java is positively impacting the development of a new industrial estate near the port area.
Next year can be a golden period for Subang Regency in West Java Province. After Patimban Port has operated at the end of 2020, the regency will receive a toll road access to Patimban Port spanning 37.05 kilometres (km).
The toll road that is planned to connect the new port to the industrial estate in West Java will operate in 2024. Currently, the construction of the toll road access to Patimban that is worked on by the toll road enterprise (BPJT) PT Jasamarga Akses Patimban (JAP) has commenced.
JAP is a consortium of state-owned enterprises (SOEs)-private companies-region-owned enterprises (BUMDs) that consist of PT Jasa Marga Tbk, PT Nusa Raya Cipta (NRC), PT Adhi Karya (ADHI), PT PP Tbk, PT Wijaya Karya Tbk (WIKA), and PT Subang Sejahtera.
According to the contract, JAP will construct 13.11 km, while the remaining 22.94 km will be constructed by the government. The toll road access to Patimban is connected to Cikampek-Palimanan toll road in the south and connected to Patimban Port in the north.
Until now, the Transportation Ministry forecasts that Patimban Port can serve 7.5 million TEUs of containers per year and 600,000 units of motor vehicles (car terminal) per year.
The port is a national strategic project (PSN) that sits on top of an area of 369 hectares, and it also has a backup area of 356 hectares.
Colliers’ Industrial and Logistics Services Head Rivan Munansa reckoned that the development of a new industrial estate near Patimban Port would attract foreign and local investors, especially those from the electric vehicle industry that is currently growing.
Through Patimban Port, the government hopes to build an export market and reduce congestion at Tanjung Priok Port in Jakarta.
He added that Patimban Port could be an automotive production hub. With a service capacity of up to 600,000 units of vehicles per year, Patimban Port will be one of the several stimuli for the industrial estate in Subang as industrial lands in Bekasi, Karawang, and Cikarang are starting to be limited.
Moreover, the expansion of industrial players from the west to the east corridor is opening the potential for other business sectors, such as fast-moving consumer goods (FMCG) and cold storage.
Rivan also predicts that the demand for the industrial estate in Subang will increase, and it will potentially match the demand for industrial estates in Bekasi and Karawang.
Based on Colliers’ Market Insights, Patimban Port has a strategic location as it is located around 70 kilometres from Karawang Industrial Estate. As the locations are near each other, he added that they could help reduce national logistics costs.
Another advantage of Subang is the prices of the industrial lands compared to the prices of the industrial lands in Bekasi and Karawang. With Patimban Port, the prices of lands in Subang will be boosted. Moreover, the new port that has an international status has a large potential to move productivity in the industrial estate in Subang, West Java.
Currently, land prices in Subang are still more affordable than industrial lands in Bekasi and Karawang.
In early 2023, the selling prices of lands in the industrial estate in Subang are around Rp1.8 million per square metre, which is cheaper compared to the prices of industrial lands in Karawang that are around US$154 per square metre or Rp2.2 million per square metre. Meanwhile, the prices of industrial lands in Bekasi are higher, US$201 per square metre or Rp2.9 million per square metre.
“It is a good opportunity for local and foreign investors to acquire lands [in Subang] as the prices are still more competitive,” Rivan said in Colliers’ Market Insights on Thursday (11/5).
One of the supports for Patimban Port is its connectivity infrastructure in the form of Patimban Access Toll Road that is set to operate in 2024. The toll road is predicted to boost land absorption in the industrial estate this year.
Land absorption
Indonesia Property Study Centre (PSPI) Executive Director Panangian Simanungkalit said that road infrastructure would always increase business value and land absorption around it.
“It is a large potential for industrial estate development in the future as the distance is very close to existing industrial estates in Bekasi, Cikarang, and Karawang,” he said recently.
Patimban Access Toll Road is a road infrastructure that connects Cikopo-Palimanan (Cipali) toll road to Patimban Port that spans 37.05 km and has an investment value of Rp5.03 trillion.
The toll road project is worked on by JAP, which includes PT Nusa Raya Cipta Tbk as a subsidiary of PT Surya Semesta Tbk that has a business of selling lands in the industrial estate in Subang, which is Subang Smartpolitan, through PT Suryacipta Swadaya.
PT Suryacipta Swadaya Managing Director Hudaya Aryanto said that the construction of Patimban Access Toll Road was a blessing for business players in the industrial estate.
Hudaya reckoned that the toll road would boost and become the backbone for urban development as well as the new industrial estate in Subang in West Java.
“Including our area, Subang Smartpolitan,” he said recently.
Currently, Subang Smartpolitan that has a size of 2,717 hectares is an integrated independent city that implements the smart and sustainable concept.
The area implements infrastructures and facilities that are based on internet of things (IoT) to accommodate industrial, business, and social needs in the area.
Subang Smartpolitan has a strategic location in the industrial centre of West Java, and it is connected to Trans-Java toll road, Patimban Port, Kertajati International Airport, and other main national infrastructures.
PT Suryacipta Swadaya Sales and Marketing VP Abednego Purnomo added that the interest in the new industrial estate was quite high even before Patimban Access Toll Road project.
Currently, there are at least two electric vehicle (EV) companies that are in a process of signing a land purchase contract at the location.
One of them is the EV company from China that is asking for 100 hectares and an additional 70 hectares for supplier tier 1.
The company wants its supply chain to be located at a close location.
“Currently, I am holding a discussion with several EV [companies]. If the government’s incentives support EVs, I am optimistic about securing at least two companies,” he said.
