Jakarta. Industrial estate developer Jababeka is exploring partnerships with Chinese counterparts to expand its industrial, tourism and logistics projects, as it seeks to diversify its growth beyond land sales and strengthen recurring infrastructure revenue despite a first-half loss in 2026.

The strategy was outlined by company director Hyanto Wihadhi after the third-quarter 2026 national meeting of Indonesia’s special economic zones (SEZs) in Jakarta.

Jababeka is exploring cooperation with partners in Fuzhou, China, to develop tourism, education and fisheries projects in the Tanjung Lesung SEZ in Banten. It is also pursuing a proposed “Twin Island” partnership with parties in Hainan, China, to explore opportunities in education, health care, tourism and logistics in the Morotai SEZ in North Maluku.

Both initiatives remain subject to feasibility studies, agreements between the parties and regulatory approvals.

Hyanto said industrial estate developers could no longer rely solely on land sales to remain competitive, but needed to provide reliable infrastructure, business services, education and workforce development to support sustainable investment.

Jababeka’s infrastructure business recorded 15% year-on-year revenue growth in the first half of 2026, accounting for about 57% of consolidated revenue, the company said.

Through its infrastructure subsidiary, Jababeka Infrastruktur, the company is strengthening services covering energy and electricity, clean water, wastewater treatment, estate management and logistics, particularly in Cikarang, West Java. It is also evaluating opportunities to expand these services into broader markets.

Potential strategic partnerships, mergers and acquisitions remain among its options, subject to business feasibility, cash flow prospects, risk assessments and applicable regulatory requirements.

Jababeka recorded a net loss of Rp6.44 billion ($355,000) in the six months through June, compared with a net profit of Rp627.56 billion in the same period last year. Revenue fell 10.6% year-on-year to Rp2.44 trillion from Rp2.73 trillion.

Management attributed the net loss primarily to one-off, non-operating costs associated with refinancing its senior notes with bank loans. The expenses included foreign-exchange losses, costs from terminating hedging instruments, and accelerated amortization of senior notes due in 2027.

Excluding the refinancing impact, Jababeka recorded operating profit of Rp524 billion, down 36% from Rp822.8 billion a year earlier. The decline was mainly due to lower recognition of industrial land sales revenue in Kendal, reflecting differences in the timing of revenue recognition.

Kendal Remains Key to Industrial Property Sales

The Kendal Special Economic Zone in Central Java, developed through a partnership between Jababeka and Singapore’s Sembcorp Development, remains a major contributor to the company’s property marketing sales.

Kendal accounted for about 71% of Jababeka’s total marketing sales of Rp1.19 trillion in the first half of 2026, according to the company.

Jababeka is pursuing the next phase of development at Kendal in line with investor demand, infrastructure readiness and regulatory approvals. Differences in the timing of revenue recognition from industrial land sales in Kendal contributed to the decline in operating profit during the first half.

Expanding tourism and logistics opportunities

In Tanjung Lesung, Jababeka’s subsidiary Banten West Java Tourism Development is exploring cooperation with partners in Fuzhou under a proposed “Two Countries, Twin Parks” concept covering tourism, education, fisheries and supporting industries.

The company is also assessing opportunities for marine tourism facilities, including a possible marina. Tanjung Lesung was among Indonesian projects introduced to potential partners and investors during a maritime tourism promotion event in Monaco in September, facilitated by the Tourism Ministry.

In Morotai, the proposed “Twin Island” partnership with parties in Hainan could cover education and health care, tourism, meetings and conferences, and a logistics hub serving eastern Indonesia.

“Jababeka not only wants to increase the contribution of the Kendal Industrial Estate, but also to promote the development of the Tanjung Lesung and Morotai special economic zones,” Hyanto said.

He emphasized the importance of international partnerships in connecting the company’s industrial and tourism developments with economic growth centers across Asia.

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