Guide to Setting Up a Factory in Cikarang Industrial Estate Area

Manufacturing in Indonesia continues to accelerate, supported by stable growth indicators and a strong ecosystem, inspiring confidence in investors and manufacturers. 

With modern facilities, integrated utilities, and a strong ecosystem of multinational tenants, these estates offer a foundation that enables both new and expanding industries to operate with confidence. 

Strategic Advantages of Manufacturing in Indonesia 

Indonesia’s manufacturing outlook remains strong, supported by steady expansion and improving business confidence. Key indicators underline why the country continues to attract investors looking to build or scale factories. These are: 

• PMI 51.9 in January 2025, rising to 53.6 in February, showing consistent growth and optimism. 
• Growth is driven by strong domestic demand, with export orders gradually improving. 
• The government targets 8% annual economic growth (2025–2029) to boost long-term competitiveness. 
• The non-oil and gas manufacturing sector is expected to contribute 8.58% to GDP by 2029. 

These positive indicators strengthen the appeal of industrial hubs, where manufacturers can operate in a stable, growth-ready environment.

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An Overview of Industrial Estates in Cikarang

Cikarang, located in Bekasi, West Java, is home to some of Indonesia’s largest and most mature industrial estates, spanning thousands of hectares. The area supports a wide range of manufacturing activities, including automotive and electronics manufacturing, food processing, and chemical production. 

Within this ecosystem, estates such as MM2100 Industrial Town illustrate the structure of integrated industrial parks in Cikarang. Developed to accommodate multinational and domestic manufacturers, such estates typically combine production zones with supporting infrastructure and estate-level management. 

Manufacturers operating in Cikarang include companies across sectors such as: 

• Automotive: Vehicle assembly and component manufacturing (Toyota, Daihatsu, Isuzu) 
• Electronics: Consumer and industrial electronics (Panasonic, LG Electronics, Samsung) 
• Food processing: Packaged foods and consumer staples (Nestlé, Indofood, Unilever) 

This concentration has positioned Cikarang as one of Indonesia’s most important manufacturing bases. 

How Cikarang Industrial Estates Supports Industrial Growth 

Cikarang’s role in Indonesia’s industrial expansion is shaped by location, infrastructure, and long-term planning rather than by individual estates alone. 

Key characteristics across Cikarang’s established industrial estates include strategic access to Jakarta, direct highway connections, reliable power supply, experienced estate management, and eco-industrial recognition, all of which support manufacturing continuity and growth. 

• Strategic Jakarta Access: Closest industrial park to the capital, with fast routes to Tanjung Priok Seaport and Soekarno–Hatta Airport, ensuring reliable logistics support for your operations. 
• Direct Highway Connection: Linked to the Jakarta–Cikampek Highway for smooth logistics and supply-chain movement. 
• Reliable Power Supply: Stable electricity from a government-approved private provider to support continuous production. 
• Experienced Estate Management: Backed by 30+ years of industrial park operations with digital service support. 
• Eco-Industrial Recognition: Some estates in Cikarang have adopted eco-industrial and smart estate frameworks in line with evolving industrial standards. 

These factors collectively support manufacturing continuity and scalability within the region.

Priority Sectors within the Cikarang Industrial Estate Area 

The Cikarang industrial estate ecosystem supports a wide range of manufacturing activities. Based on the tenant mix across multiple estates, key sectors include: 

Automotive & Components 

Manufacturers of vehicles, engines, and parts. Examples include companies producing: 

• Vehicle assemblies 
• Engine parts 
• Metal components 

Electronics & Electrical Equipment 

Producers of consumer electronics, components, and industrial electrical products, covering: 

• Home appliances 
• Electronic modules 
• Industrial electronics 

Food & Beverage Processing 

Facilities specializing in large-scale food and beverage production, such as: 

• Packaged foods 
• Beverages 
• Ingredients processing 

Chemicals & Pharmaceuticals 

Companies involved in: 

• Industrial chemicals 
• Specialty materials 
• Pharmaceutical products 

Logistics, Warehousing & Packaging 

Businesses supporting supply-chain operations, including: 

• Distribution centers 
• Warehousing 
• Packaging solutions 

General Manufacturing 

Broad industrial activities such as: 

• Machinery 
• Plastics 
• Consumer goods 

This diversity reflects Cikarang’s ability to support both capital-intensive and consumer-oriented manufacturing models. 

Step-by-Step Guide to Setting Up a Factory in Indonesia 

Setting up a factory in Indonesia involves key stages, including establishing your business entity, obtaining core licenses, selecting an industrial site, ensuring compliance, and preparing for operations. This structured process helps investors enter the market efficiently while adhering to local regulations. 

Establish Your Business and Obtain Core Licensing 

Begin by laying the foundation for your factory operations with the proper business structure and essential licenses. Key steps include: 

• Choosing between a PT PMA (foreign-owned) or a local PT, which affects ownership, licensing, and capital rules. 
• Registering your company through the OSS system to obtain your NIB, the core license needed to operate. 
• Securing additional permits if required by your sector, such as: 
  • Industrial business licenses 
  • Environmental approvals 
  • Building or operational permits 

Prepare Your Industrial Location and Compliance Requirements 

After securing licenses, the next step is selecting an industrial site and meeting all compliance standards before construction or operations begin. This stage involves: 

• Choosing an estate that matches your production needs, utilities, and expansion plans. 
• Ensuring compliance with: 
  • Construction permits 
  • Environmental obligations 
  • Safety and building standards 

Build Your Workforce and Begin Factory Operations 

With your facility and permits ready, you can move toward operational readiness. Essential tasks include: 

• Preparing employment agreements and setting up payroll management. 
• Ensuring compliance with Indonesian workforce regulations. 
• Starting production once all licenses and facilities are in place. 
• Maintaining ongoing compliance through: 
  • Tax filings 
  • Operational reporting 
  • Environmental submissions

Start Your Manufacturing Expansion in Indonesia with InCorp 

Manufacturers planning to set up a factory in Indonesia benefit most when they move through the process with clarity and compliance. 

If you want to accelerate your factory setup, InCorp Indonesia (an Ascentium Company) can help you navigate with our comprehensive incorporation services, such as: 

• Company establishment (PT PMA or local PT) 
• Industrial licensing and compliance 
• Environmental and construction permits 
• Workforce setup and payroll administration 

Fill out the form below to move faster, stay compliant, and begin operations with confidence in one of Indonesia’s most established industrial zones.

Frequently Asked Questions