4 Reasons Why Subang is Fast Becoming the Hottest Industrial Location in Indonesia.

There is a growing demand in industrial areas by multinational corporations across the country. As they vie with one another to obtain the best location possible to serve their industrial needs, so does every region in Indonesia that houses industrial estates.

In the end, it all falls down to the competitiveness of each area. The more beneficial it is for a business, the more likely it will become the first name mentioned amongst these companies.

One such place that is rapidly rising to the top of the list is Subang in West Java.

According to Statistics Indonesia (BPS), 171 businesses have made Subang their home in 2018, with 42 percent being from the textile industry. Other industries to open operations in Subang include chemicals, paper, electronics, and many others.

In 2013, Pirelli Tires and Astra Otoparts invested US$ 120 million to set up a factory on a 30-hectare land in Subang that was completed in 2016. Chinese company Meiloon Industrial Co Ltd relocated its factory from Suzhou to Subang, investing Rp. 1.3 trillion for its construction.

On a side note, the biggest explosive material development and production facility in South-East Asia is found in Subang. It is predicted that Subang is set to welcome even more local and international companies and industries in the very near future.

At the same time, the number of quality industrial estates is likely to grow as well. With so many positives surrounding Subang, what exactly makes this fast-developing regency tick?

Here are four reasons why:

Strategic Access

Subang is strategically located along West Java’s infrastructure corridor, with the completed Cipali Toll Road – part of the Trans Java Toll Road – connecting Greater Jakarta, West Java, Central Java, and East Java.

Patimban Deep Seaport

Indonesian President Joko Widodo recently officially inaugurated the ambitious Patimban Seaport project in December 2020. Initiated in 2017, the seaport cost US$3 billion and has become a magnet for the rapid growth of Subang as an industrial area.

Lower Minimum Wage

The minimum wage in Subang per 2020 is Rp. 2.9 million per month. It is significantly lower when compared to neighboring industrial areas such as Purwakarta at Rp. 4 million and Karawang and Bekasi at Rp. 4.5 million.

Rise in demand

Due to cheaper land and labor costs as well as an abundance in labor supply, multinational corporate groups are actively seeking to establish production bases in Subang, triggering a rise in demand for industrial land in the regency.