Batang Industrial Estate's Big Tenants to Bring Big Profit for PTPP

State-owned contractor PT PP Tbk (PTPP) will benefit from the development of the Batang Industrial Estate, which is running faster than expected. Several giant tenants that have entered, such as Nestle Indonesia, KCC Glass, and Wavin, will be a catalyst for industrial estate development.

"Through Dec 2022, PTPP has made significant progress in infrastructure development in Batang Industrial Estate, and more tenants have signed agreements," BRI Danareksa Sekuritas said in its research after visiting the industrial estate. Of the 450 hectares of clusters in Batang Industrial Estate, 13 tenants have signed lease agreements covering 117.43 hectares or 26 percent of the total area. These tenants' presence is much higher than in July 2022, when only eight tenants with a total area of 108.6 hectares.

The three largest tenants are South Korea's KCC Glass (46 ha), Netherlands-based pipe producer Wavin (20 ha), and Taiwan's shoe producer Yih Quan (16.4 ha). "One tenant is still under negotiation stage, South Korea's LG Consortium, which is likely to bid for 67 ha of land," BRI Danareksa Sekuritas wrote.