Indonesia Facility Management in Industrial Parks Market
Description
Indonesia Facility Management in Industrial Parks Market Overview
The Indonesia Facility Management in Industrial Parks Market is valued at USD 15 billion, based on a five-year historical analysis. This growth is primarily driven by rapid industrialization, urbanization, and increasing investments in infrastructure development. The demand for efficient facility management services has surged as companies seek to optimize operational efficiency, reduce costs, and comply with evolving sustainability standards. Key market trends include the adoption of integrated facility management solutions, outsourcing of non-core functions, and the implementation of smart building technologies to enhance operational performance.
Key cities dominating this market include Jakarta, Surabaya, and Bandung. Jakarta, as the capital, serves as the economic hub with a high concentration of industrial parks. Surabaya and Bandung follow due to their strategic locations and expanding industrial sectors, making them attractive for both local and foreign investments in facility management services.
In 2023, the Indonesian government implemented the Regulation of the Minister of Industry No. 5/2023, issued by the Ministry of Industry, which mandates that all industrial parks must adhere to specific environmental management standards. This regulation requires industrial parks to establish and maintain environmental management systems, conduct regular environmental impact assessments, and comply with waste management and pollution control thresholds. The regulation aims to promote sustainable practices and reduce the ecological footprint of industrial activities, thereby enhancing the demand for facility management services that comply with these new standards.
Indonesia Facility Management in Industrial Parks Market Segmentation
By Type:
The facility management market in industrial parks is segmented into various types of services, including cleaning services, security services, maintenance services, landscaping services, waste management services, energy management services, facility technology solutions, and others. Among these, cleaning and maintenance services are particularly dominant due to the essential need for hygiene and operational upkeep in industrial environments. The increasing focus on workplace safety and employee well-being further drives the demand for these services.
By End-User:
The end-user segmentation includes manufacturing, logistics & warehousing, technology & electronics, automotive, pharmaceuticals, food and beverage, chemicals & petrochemicals, and others. The manufacturing sector is the largest end-user, driven by the need for efficient facility management to support production processes and ensure compliance with safety regulations. The logistics and warehousing sectors are also growing rapidly, necessitating effective management of facilities to optimize supply chain operations.
Indonesia Facility Management in Industrial Parks Market Competitive Landscape
The Indonesia Facility Management in Industrial Parks Market is characterized by a dynamic mix of regional and international players. Leading participants such as ISS Indonesia, CBRE Indonesia, JLL Indonesia, Cushman & Wakefield Indonesia, Savills Indonesia, Sodexo Indonesia, Knight Frank Indonesia, PT Shield-On Service Tbk (SOS), PT Spektra Solusindo, PT Patra Jasa, Atalian Global Services Indonesia, Colliers Facility Management Services Indonesia, Leads Property Services Indonesia, Maple Leaf Services Indonesia, AEON Delight Indonesia contribute to innovation, geographic expansion, and service delivery in this space.
ISS Indonesia
1996
Jakarta, Indonesia
CBRE Indonesia
1997
Jakarta, Indonesia
JLL Indonesia
1997
Jakarta, Indonesia
Cushman & Wakefield Indonesia
1998
Jakarta, Indonesia
Savills Indonesia
2011
Jakarta, Indonesia
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Revenue Growth Rate (Industrial Parks Segment)
Number of Industrial Park Contracts
Average Contract Value (USD)
Customer Retention Rate (Industrial Clients)
Service Quality Index (Industrial Facilities)
Indonesia Facility Management in Industrial Parks Market Industry Analysis
Growth Drivers
Increasing Industrialization:
Indonesia's industrial sector is projected to contribute approximately IDR 1,200 trillion (USD 84 billion) to the national GDP in future, driven by a focus on manufacturing and processing industries. This growth is supported by the government's target to increase the industrial sector's share of GDP from 20% to 25% in future. The rise in industrial activities necessitates efficient facility management to optimize operations and reduce costs, thereby driving demand in this sector.
Government Initiatives for Infrastructure Development:
The Indonesian government has allocated IDR 422.7 trillion (USD 28 billion) for infrastructure projects in future, focusing on transportation and utilities. These initiatives aim to enhance connectivity and operational efficiency in industrial parks. Improved infrastructure is expected to attract more businesses to these parks, increasing the demand for facility management services to maintain and operate these facilities effectively.
Rising Demand for Operational Efficiency:
As companies in Indonesia face increasing competition, the need for operational efficiency has become paramount. In future, businesses are expected to invest around IDR 150 trillion (USD 10.5 billion) in technology and services aimed at improving productivity. Facility management plays a crucial role in this context, as it helps streamline operations, reduce waste, and enhance service delivery, thus driving market growth.
Market Challenges
Lack of Skilled Workforce:
The facility management sector in Indonesia is grappling with a significant skills gap, with an estimated shortage of 1.5 million skilled workers in future. This shortage hampers the ability of service providers to deliver high-quality services, affecting overall operational efficiency. The lack of training programs and educational institutions focused on facility management further exacerbates this challenge, limiting the sector's growth potential.
Regulatory Compliance Issues:
Navigating the complex regulatory landscape in Indonesia poses a significant challenge for facility management companies. In future, over 60% of firms reported difficulties in complying with local regulations, which can lead to fines and operational disruptions. The evolving nature of regulations, particularly concerning environmental standards and labor laws, requires constant adaptation, straining resources and impacting service delivery.
Indonesia Facility Management in Industrial Parks Market Future Outlook
The future of the facility management market in Indonesia's industrial parks appears promising, driven by technological advancements and a growing emphasis on sustainability. As companies increasingly adopt smart facility management solutions, the integration of IoT and automation will enhance operational efficiency. Additionally, the government's commitment to developing new industrial parks will create further opportunities for facility management services, ensuring that the sector remains dynamic and responsive to market needs.
Market Opportunities
Expansion of Smart Facility Management Solutions:
The increasing adoption of smart technologies in facility management presents a significant opportunity. In future, investments in smart solutions are expected to reach IDR 50 trillion (USD 3.5 billion), enhancing operational efficiency and reducing costs for businesses in industrial parks.
Increasing Focus on Sustainability Practices:
With a growing emphasis on sustainability, facility management companies can capitalize on this trend by offering eco-friendly services. The market for green building initiatives is projected to grow by IDR 30 trillion (USD 2.1 billion) in future, providing opportunities for service providers to differentiate themselves and attract environmentally conscious clients.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Indonesia Facility Management in Industrial Parks Market is valued at USD 15 billion, based on a five-year historical analysis. This growth is primarily driven by rapid industrialization, urbanization, and increasing investments in infrastructure development. The demand for efficient facility management services has surged as companies seek to optimize operational efficiency, reduce costs, and comply with evolving sustainability standards. Key market trends include the adoption of integrated facility management solutions, outsourcing of non-core functions, and the implementation of smart building technologies to enhance operational performance.
Key cities dominating this market include Jakarta, Surabaya, and Bandung. Jakarta, as the capital, serves as the economic hub with a high concentration of industrial parks. Surabaya and Bandung follow due to their strategic locations and expanding industrial sectors, making them attractive for both local and foreign investments in facility management services.
In 2023, the Indonesian government implemented the Regulation of the Minister of Industry No. 5/2023, issued by the Ministry of Industry, which mandates that all industrial parks must adhere to specific environmental management standards. This regulation requires industrial parks to establish and maintain environmental management systems, conduct regular environmental impact assessments, and comply with waste management and pollution control thresholds. The regulation aims to promote sustainable practices and reduce the ecological footprint of industrial activities, thereby enhancing the demand for facility management services that comply with these new standards.
Indonesia Facility Management in Industrial Parks Market Segmentation
By Type:
The facility management market in industrial parks is segmented into various types of services, including cleaning services, security services, maintenance services, landscaping services, waste management services, energy management services, facility technology solutions, and others. Among these, cleaning and maintenance services are particularly dominant due to the essential need for hygiene and operational upkeep in industrial environments. The increasing focus on workplace safety and employee well-being further drives the demand for these services.
By End-User:
The end-user segmentation includes manufacturing, logistics & warehousing, technology & electronics, automotive, pharmaceuticals, food and beverage, chemicals & petrochemicals, and others. The manufacturing sector is the largest end-user, driven by the need for efficient facility management to support production processes and ensure compliance with safety regulations. The logistics and warehousing sectors are also growing rapidly, necessitating effective management of facilities to optimize supply chain operations.
Indonesia Facility Management in Industrial Parks Market Competitive Landscape
The Indonesia Facility Management in Industrial Parks Market is characterized by a dynamic mix of regional and international players. Leading participants such as ISS Indonesia, CBRE Indonesia, JLL Indonesia, Cushman & Wakefield Indonesia, Savills Indonesia, Sodexo Indonesia, Knight Frank Indonesia, PT Shield-On Service Tbk (SOS), PT Spektra Solusindo, PT Patra Jasa, Atalian Global Services Indonesia, Colliers Facility Management Services Indonesia, Leads Property Services Indonesia, Maple Leaf Services Indonesia, AEON Delight Indonesia contribute to innovation, geographic expansion, and service delivery in this space.
ISS Indonesia
1996
Jakarta, Indonesia
CBRE Indonesia
1997
Jakarta, Indonesia
JLL Indonesia
1997
Jakarta, Indonesia
Cushman & Wakefield Indonesia
1998
Jakarta, Indonesia
Savills Indonesia
2011
Jakarta, Indonesia
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Revenue Growth Rate (Industrial Parks Segment)
Number of Industrial Park Contracts
Average Contract Value (USD)
Customer Retention Rate (Industrial Clients)
Service Quality Index (Industrial Facilities)
Indonesia Facility Management in Industrial Parks Market Industry Analysis
Growth Drivers
Increasing Industrialization:
Indonesia's industrial sector is projected to contribute approximately IDR 1,200 trillion (USD 84 billion) to the national GDP in future, driven by a focus on manufacturing and processing industries. This growth is supported by the government's target to increase the industrial sector's share of GDP from 20% to 25% in future. The rise in industrial activities necessitates efficient facility management to optimize operations and reduce costs, thereby driving demand in this sector.
Government Initiatives for Infrastructure Development:
The Indonesian government has allocated IDR 422.7 trillion (USD 28 billion) for infrastructure projects in future, focusing on transportation and utilities. These initiatives aim to enhance connectivity and operational efficiency in industrial parks. Improved infrastructure is expected to attract more businesses to these parks, increasing the demand for facility management services to maintain and operate these facilities effectively.
Rising Demand for Operational Efficiency:
As companies in Indonesia face increasing competition, the need for operational efficiency has become paramount. In future, businesses are expected to invest around IDR 150 trillion (USD 10.5 billion) in technology and services aimed at improving productivity. Facility management plays a crucial role in this context, as it helps streamline operations, reduce waste, and enhance service delivery, thus driving market growth.
Market Challenges
Lack of Skilled Workforce:
The facility management sector in Indonesia is grappling with a significant skills gap, with an estimated shortage of 1.5 million skilled workers in future. This shortage hampers the ability of service providers to deliver high-quality services, affecting overall operational efficiency. The lack of training programs and educational institutions focused on facility management further exacerbates this challenge, limiting the sector's growth potential.
Regulatory Compliance Issues:
Navigating the complex regulatory landscape in Indonesia poses a significant challenge for facility management companies. In future, over 60% of firms reported difficulties in complying with local regulations, which can lead to fines and operational disruptions. The evolving nature of regulations, particularly concerning environmental standards and labor laws, requires constant adaptation, straining resources and impacting service delivery.
Indonesia Facility Management in Industrial Parks Market Future Outlook
The future of the facility management market in Indonesia's industrial parks appears promising, driven by technological advancements and a growing emphasis on sustainability. As companies increasingly adopt smart facility management solutions, the integration of IoT and automation will enhance operational efficiency. Additionally, the government's commitment to developing new industrial parks will create further opportunities for facility management services, ensuring that the sector remains dynamic and responsive to market needs.
Market Opportunities
Expansion of Smart Facility Management Solutions:
The increasing adoption of smart technologies in facility management presents a significant opportunity. In future, investments in smart solutions are expected to reach IDR 50 trillion (USD 3.5 billion), enhancing operational efficiency and reducing costs for businesses in industrial parks.
Increasing Focus on Sustainability Practices:
With a growing emphasis on sustainability, facility management companies can capitalize on this trend by offering eco-friendly services. The market for green building initiatives is projected to grow by IDR 30 trillion (USD 2.1 billion) in future, providing opportunities for service providers to differentiate themselves and attract environmentally conscious clients.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
89 Pages
- 1. Indonesia Facility Management in Industrial Parks Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. Indonesia Facility Management in Industrial Parks Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. Indonesia Facility Management in Industrial Parks Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing industrialization in Indonesia
- 3.1.2. Government initiatives for infrastructure development
- 3.1.3. Rising demand for operational efficiency
- 3.1.4. Growth in foreign direct investment (FDI)
- 3.2. Restraints
- 3.2.1. Lack of skilled workforce
- 3.2.2. Regulatory compliance issues
- 3.2.3. High competition among service providers
- 3.2.4. Economic fluctuations affecting investment
- 3.3. Opportunities
- 3.3.1. Expansion of smart facility management solutions
- 3.3.2. Increasing focus on sustainability practices
- 3.3.3. Development of new industrial parks
- 3.3.4. Adoption of technology-driven services
- 3.4. Trends
- 3.4.1. Integration of IoT in facility management
- 3.4.2. Shift towards outsourcing facility management services
- 3.4.3. Emphasis on health and safety standards
- 3.4.4. Growth of green building initiatives
- 3.5. Government Regulation
- 3.5.1. Implementation of labor laws
- 3.5.2. Environmental regulations for industrial operations
- 3.5.3. Standards for facility management practices
- 3.5.4. Incentives for sustainable practices
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. Indonesia Facility Management in Industrial Parks Market Segmentation, 2024
- 4.1. By Service Type (in Value %)
- 4.1.1. Cleaning Services
- 4.1.2. Security Services
- 4.1.3. Maintenance Services
- 4.1.4. Landscaping Services
- 4.1.5. Others
- 4.2. By End-User (in Value %)
- 4.2.1. Manufacturing
- 4.2.2. Logistics & Warehousing
- 4.2.3. Technology & Electronics
- 4.2.4. Automotive
- 4.2.5. Others
- 4.3. By Service Model (in Value %)
- 4.3.1. Integrated Facility Management (IFM)
- 4.3.2. Bundled Services
- 4.3.3. Single Service Providers
- 4.4. By Contract Type (in Value %)
- 4.4.1. Fixed-Term Contracts
- 4.4.2. Open-Ended Contracts
- 4.4.3. Project-Based Contracts
- 4.5. By Geographic Location (in Value %)
- 4.5.1. Java
- 4.5.2. Sumatra
- 4.5.3. Kalimantan
- 4.5.4. Sulawesi
- 4.5.5. Bali
- 4.5.6. Nusantara (IKN)
- 4.6. By Client Size (in Value %)
- 4.6.1. Large Enterprises
- 4.6.2. Medium Enterprises
- 4.6.3. Small Enterprises
- 4.6.4. Others
- 5. Indonesia Facility Management in Industrial Parks Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. ISS Indonesia
- 5.1.2. CBRE Indonesia
- 5.1.3. JLL Indonesia
- 5.1.4. Cushman & Wakefield Indonesia
- 5.1.5. Savills Indonesia
- 5.2. Cross Comparison Parameters
- 5.2.1. Revenue Growth Rate
- 5.2.2. Number of Contracts
- 5.2.3. Average Contract Value (USD)
- 5.2.4. Customer Retention Rate
- 5.2.5. Service Quality Index
- 6. Indonesia Facility Management in Industrial Parks Market Regulatory Framework
- 6.1. Building Standards
- 6.2. Compliance Requirements and Audits
- 6.3. Certification Processes
- 7. Indonesia Facility Management in Industrial Parks Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. Indonesia Facility Management in Industrial Parks Market Future Segmentation, 2030
- 8.1. By Service Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Service Model (in Value %)
- 8.4. By Contract Type (in Value %)
- 8.5. By Geographic Location (in Value %)
- 8.6. By Client Size (in Value %)
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