ESR Group and PT MC Urban Development Indonesia Launch $80 Million Joint Development in Greater Jakarta
ESR Group Group and PT MC Urban Development Indonesia (MCUDI) have entered into a joint development agreement to build two institutional-grade logistics and industrial facilities in Greater Jakarta, the companies announced July 7, 2026. The developments, located in Karawang and Cikarang, carry a total expected asset value of over US$80 million and are targeted for completion in the third quarter of 2027.
The agreement marks the second phase of a broader strategic partnership between ESR Group and MCUDI in Indonesia, building on the earlier delivery and leasing of three logistics parks — Karawang Logistics Park 1 and Cikarang Logistics Parks 1 and 2 — which the companies said demonstrated strong customer demand.
Project Details: Karawang and Cikarang Facilities
The first asset, the Karawang Logistics and Industrial Hub, will be developed on an approximately 100,000-square-meter freehold site within the Suryacipta Industrial Estate in Karawang. The facility will be a Grade A, single-story, three-block structure delivering close to 63,000 square meters of leasable area. The site has direct access to the Jakarta–Cikampek toll road and is expected to benefit from future connectivity via the Jakarta–Cikampek II South toll road. The project is targeting multinational third-party logistics and manufacturing customers.
The second asset, the Cikarang Logistics and Industrial Hub, will be located within the Jababeka Industrial Estate in Cikarang. Developed on an approximately 68,000-square-meter freehold site, the two-block, single-story Grade A facility will deliver over 48,000 square meters of leasable area. It is designed to serve multinational logistics, e-commerce, and manufacturing customers and benefits from connectivity across the Jakarta–Cikampek toll road network.
Together, the two facilities will add approximately 111,000 square meters of modern logistics space to Greater Jakarta's industrial corridor.
Design and Sustainability Standards
Both facilities will be designed and built by Japanese contractors in accordance with ESR Group and MCUDI's development standards. The buildings will incorporate seismic-compliant design, modern fire safety systems, LED lighting, FRP skylights, and provisions for solar panel installation. The companies said both developments adopt a human-centric design approach intended to enhance energy efficiency and support worker well-being.
Partnership Background and Strategic Context
MCUDI is a wholly owned subsidiary of Mitsubishi Corporation and has an established track record in real estate development in Indonesia. ESR Group is an Asia-Pacific focused real asset owner and manager.
The new joint development agreement represents the second phase of a partnership that previously delivered three logistics parks — Karawang Logistics Park 1, Cikarang Logistics Park 1, and Cikarang Logistics Park 2. Those earlier assets were described by the companies as collectively demonstrating strong occupier demand in Greater Jakarta's industrial submarkets.
Jai Mirpuri, Head of Southeast Asia at ESR, said the investment reflects the firm's asset-light strategy and focus on Asia-Pacific markets. "Following the success of our initial collaboration, we are scaling institutional-grade logistics and industrial developments in strategic Greater Jakarta locations where supply remains structurally constrained," Mirpuri said. "We are pleased to deepen our partnership with MCUDI to deliver modern, high-quality assets that support the increasingly sophisticated requirements of logistics, manufacturing, and supply chain customers."
Hideaki Nakajima, incoming President Director of MCUDI, said the expansion combines the firm's local capabilities and Japan-based network with ESR Group's fund management and development expertise. "Together, we are well positioned to deliver institutional-grade assets that meet the evolving needs of global and domestic customers across Greater Jakarta," Nakajima said.
Market Positioning
Karawang and Cikarang are described by the companies as two of Indonesia's most established and in-demand industrial submarkets. Both locations sit along the Jakarta–Cikampek toll road corridor. The Suryacipta Industrial Estate in Karawang and the Jababeka Industrial Estate in Cikarang are the planned industrial parks where the respective facilities will be developed.
Construction on both facilities has commenced, with completion targeted for the third quarter of 2027.