The International Finance Corporation (IFC), a member of the World Bank Group, will provide LOGOS, an Australian logistics property group, with up to USD 120 million in debt financing for the development of Indonesia’s green logistics hub in the greater Jakarta area. There will be two estates: LOGOS Cikarang Logistics Park and LOGOS KLOG Cibitung Logistics Hub.
These two logistics estates will deliver modern and high-quality logistics infrastructure in Indonesia’s rapidly growing e-commerce market while also support business expansion and promote competitiveness in the country’s warehousing sector. Potential tenants of the hub include a global third-party logistic firms and large e-commerce groups.
In January 2021, LOGOS also inked a joint venture with Canada Pension Plan Investment Board (CPP Investments) to establish a new venture for the development of modern logistics facilities in Greater Jakarta. This is the second joint venture between CPP Investments and LOGOS, with the first one including a number of logistics properties: Metrolink Logistics Hub, Cikarang Logistics Park, Cibitung Logistics Hub and Cileungsi Distribution Center.
Indonesia is home to an expanding middle class and rapid urbanization. The e-commerce sector is on track to be worth USD 124 billion by 2025, but the country’s fragmented geography represents a key challenge for the developement of the logistics sector.
(Sources: Deal Street Asia; International Finance Corporation)