The year 2021 was considered as the year of the second global economic crisis, as the aftereffect of the ongoing pandemic since 2020. Despite so, Indonesia’s economy is slowly progressing to recovery and is hoped to be rehabilitated by 2022.
From January to September 2021, the Ministry of Investments of the Republic of Indonesia records an increase in the realization of FDI by 9.9% and PMDN by 5.8% compared to what it was during the same period in 2020.
This increase in the FDI realisation impacts beneficially to PT Suryacipta Swadaya (Suryacipta) as the developer of an industrial estate – where its investors instill trust for their business to Suryacipta City of Industry, Karawang, West Java.
Abednego Purnomo, as the VP of Sales and Marketing, shares “Essentially, the year 2021 has several indications of an economic recovery present, taking into consideration that Suryacipta was able to increase the number of transactions and inquiries on our estate for either Suryacipta City of Industry or Subang Smartpolitan.”
The benefits were also represented by the increasing number of potential investors showing their interests to Subang Smartpolitan.
Based on the business activities throughout 2021, Suryacipta has claimed data center as a distinctive industry to keep in mind – considering that 75% of the new tenants operate in the industry, followed by the companies within the manufacturing industry from China and The United States of America, Abednego shares.
For the past decade, the number of data centers have shown a significant increase in Indonesia, as an aftermath of the country’s acceleration to achieve digitalisation. Indonesia’s fast paced development was pushed by several factors including the urgency to adopt smartphone usage, increasing internet accessibility, and other significant support by the government.
According to Hootsuite, internet users in Indonesia have increased by 35% for the past three years. In parallel to that, Mordor Intelligence has noted that the data center market in Indonesia has reached USD 1.53 billion in 2020, and is expected to increase to USD 3.07 billion by 2026.
Furthermore, Government Regulation (PP) No. 5/2021, which classifies data centers as part of the industrial sector and is required to be located in industrial areas based on PP No. 28/2021, has an indirect impact on the increasing demand towards industrial estates. The high selling and rental prices in big cities like Jakarta further contribute to the increasing demand.
Suryacipta has accommodated the data center market’s demands by pushing innovation during phase 3 of Suryacipta City of Industry, which caters according to the data center industry’s needs. Despite pandemic conditions, Suryacipta persists to follow through their responsibilities in improving its services for tenants, by continuously maintaining and improving their electricity, water, and internet connectivity quality.
According to a different source, Suryacipta is currently discussing with other internet provider establishments for assistance to ensure that the facilities are present within the estate.
Aside from tenants within the industry sector, Suryacipta has noted an increase in the number of tenants within the office building and commercial areas (which includes restaurants and banks), as an indirect result of the ongoing business activities within the industrial estate. These activities have become an indicator of economic recovery.
Through our industrial estates in Karawanga and Subang, we hope to support the economic growth of Indonesia by providing an investment destination that is able to accommodate business and investment parties, concluded Abednego.