Business Tips: Why You Should Renting A Warehouse in East Java

10 Benefits of Renting A Warehouse in East Java for Businesses

  • InCorp Editorial Team
  • 24 June 2024
  • 6 minute reading time

For businesses looking to expand their operations within Indonesia, renting a warehouse in East Java presents a compelling strategic opportunity. Renting a warehouse might effectively impact your business operations. 

East Java region has a strong economy, a well-developed transportation network, and a central location for efficient distribution throughout the archipelago. Opening your business in the region might be a promising choice if you’re looking to grow your business in Indonesia.

The Growing Manufacturing Industry in East Java

Business Tips: Why You Should Renting A Warehouse in East Java

East Java has become a favored investment destination for domestic and international investors. Major industrial zones in the Greater Surabaya area are concentrated in six regions: Mojokerto, Sidoarjo, Gresik, Surabaya, Pasuruan, and Tuban. 

The industrial regions in Mojokerto generally accommodate light to medium industries, including food processing, packaging, and electronics manufacturing. Due to their proximity to the city center, Surabaya, Pasuruan, and Sidoarjo areas are dominated by light to medium industries and logistics companies.

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The Benefits of Renting A Warehouse in East Java  

Renting a warehouse in East Java offers significant benefits for businesses, particularly in managing inventory and providing additional storage space. Here is a detailed explanation of the key advantages of renting a warehouse for companies in East Java.

NoAspectDescription
1Storage FlexibilityRenting a warehouse allows companies to adjust their storage size with market demand fluctuations, ensuring they only pay for used space.
2Controlled CostsBy renting a warehouse, businesses can avoid the substantial costs of purchasing land and construction and long-term maintenance and repair expenses.
3Accessibility and LocationRented warehouses in East Java are often strategically located near transportation hubs or major highways.
4ScalabilityUsing warehouse rental services in East Java allows them to quickly adjust their storage size without committing to long-term investments.
5Maintenance and Additional ServicesMaintenance and additional services from renting a warehouse help businesses focus on their core activities without worrying about complex storage operations.
6Risk ReductionBy renting a warehouse, businesses can reduce the risks of owning assets, such as property depreciation or unexpected repair costs.
7Operational Efficiency ImprovementGoods can be neatly stored for easy access, reducing time spent on inventory management.
8Diverse OptionsThe warehouse rental market in East Java offers a variety of options, from cold storage warehouses to those for packaged goods.
9Technological and Infrastructure UpdatesWarehouse rental providers in East Java often invest in technological and infrastructure updates to ensure their warehouses meet the latest safety and quality standards.
10Focus on Core ActivitiesBy removing the need to manage storage facilities, companies in East Java can dedicate more attention to their core activities, including product development, marketing, and customer service.

6 Warehouse Rental in East Java

If you decide to rent a warehouse facility, East Java provides various excellent options for your business. These warehouses are strategically located in different areas of East Java and are designed to meet multiple business needs. Here are some notable options:

SAFE n LOCK Warehouse

SAFE n LOCK Eco-Industrial Park & Halal Industrial Park in Sidoarjo is a premier warehouse area developed by PT Makmur Berkah Amanda Tbk, located in Sidoarjo District.

Central Industrial Park

Central Industrial Park offers a modern warehouse design with options for open and closed warehouses at competitive prices.

Sentral Singosari Malang

Developed by Waringin Group, Sentral Singosari Malang is a new warehouse area with an open warehouse concept.

Sentral Margomulyo Permai

Offering open and closed warehouse designs with a modern concept, Sentral Margomulyo Permai is flood-free and strategically located.

Halal Industrial Park Sidoarjo

This industrial park caters to the growing demand for domestically and internationally halal products. It offers a sustainable halal ecosystem with facilities like a halal laboratory, management offices, and other functional buildings.

JIIPE (Java Integrated Industrial and Port Estate)

JIIPE is the largest industrial estate in East Java and Indonesia’s first integrated industrial area. It offers exclusive facilities such as golf courses and shopping centers within the estate.

Read more:

Tips on How to Rent A Warehouse in East Java

Choosing one that can enhance operational efficiency is crucial when renting a warehouse. This way, entrepreneurs can avoid losses and achieve the desired benefits from warehouse rental. Here are some tips for renting a warehouse for your business:

StepDescription
Determine the Warehouse FunctionWhen renting a warehouse, identify the specific purpose of the facility, such as whether it will be used for storage or as a distribution center.
Ensure the Building Meets Business NeedsEnsure the warehouse meets your business requirements, such as having a ceiling height sufficient for your goods and adequate electricity.
Establish Clear AgreementsClearly understand the terms between the tenant and the warehouse owner, including the rental period and costs.
Consider the Warehouse Location & SizeLocation & size are crucial as they affect shipping time costs, & your business needs.
Ensure Adequate FacilitiesVerify that the warehouse has ample parking, packaging areas, and office spaces.
Check the Rental Period & CostEnsure the rental period offered aligns with your business requirements & budget.
Examine the Rental ContractBefore you sign the rental contract, it’s important to carefully review all the terms to ensure they align with your agreement.
Consider Security MeasuresEnsure the warehouse has adequate security measures like security systems, guards, and CCTV.
Plan for GrowthEnsure the warehouse can support your business growth and has sufficient space for long-term expansion.
Get InsuranceEnsure you have insurance covering the goods stored in the warehouse to protect your business from loss or damage.

Simplify Your Warehouse Rental Process with InCorp

Renting a warehouse in East Java is a strategic move to boost your regional operations. However, there are crucial steps before moving in, and obtaining the necessary licenses is essential.

InCorp streamlines your journey to East Java warehousing success. We understand the complexities of navigating business licenses and regulations. 

Here’s how InCorp helps you avoid the bureaucratic hurdles:

Fill out the form below and unlock a seamless path to achieving your growth goals in East Java.

Teddy Willy

Branch Manager - Surabaya Office at InCorp Indonesia

With 10 years of experience in business consultancy, Teddy Willy offers expertise in financial and production auditing, sales and marketing, channels and distribution, supply chain management, and human resources for every business sector in Indonesia.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.