Krakatau Industrial Estate Sold 94% of Its Landbank

PT Krakatau Steel Tbk's (KRAS) subsidiary, PT Krakatau Sarana Properti, the developer of Krakatau Industrial Estate, is preparing a third area spanning 420 hectares.

The existing two areas, covering 630 hectares, in Banten's second-largest industrial estate are nearly fully occupied.

"Currently, the industrial estate in Cilegon, managed by PT Krakatau Sarana Properti, encompasses a total land area of 630 hectares, with approximately 94 percent already sold. The remaining six percent, equivalent to approximately 40 hectares, is targeted to be purchased by investors before 2025," Krakatau Industrial Estate Sales and Marketing Manager Saeful Rochman said on Tuesday.

One prominent player that recently entered the area is Asia Pulp & Paper Sinar Mas, a subsidiary of the Sinar Mas Group. It acquired a 19-hectare land area worth Rp 500 billion at the end of 2022 for the development of its chemical industry.

Other significant players in the vicinity include affiliates of Krakatau Steel, such as the joint venture between Krakatau Steel and Posco, known as PT Krakatau Posco.

According to Saeful, the area's appeal lies in its well-established infrastructure, including facilities for water and electricity, as well as its strategic location near export-import ports. The proximity to Cigading Port enables efficient transportation of production goods outside of Java Island and abroad.

Saeful further emphasized the positive prospects for industrial estates in Java, noting that investors from steel and petrochemical-related industries actively seek land within industrial estates, particularly on Java Island.