KNIC Photo 3

Any area allocated solely for industrial development purposes is referred to as an Industrial estate. What makes this area different from other regions is because this area is only focused on industrial businesses, usually located on the edge of the city and has good transportation access.

The idea behind allocating certain areas as industrial estates is an effort to reduce the expenses that are usually faced by heavy duty industries in setting up shops in various regions. Most industrial estates are located near infrastructure such as high-power electricity supplies, highways, railways, etc.

Benefits of Industrial Property Development in One Area

Many countries have focused property for certain industrial areas in order to boost the country's economy. Several benefits such as:

• Develop special infrastructure and thereby reduce costs in the long run.

• Feasibility for several types of benefits from the government.

• Attract new business ventures with better integrated infrastructure that benefits them.

• Helps reduce the impact of industrial use on the environment and society because it will encourage companies to buy industrial property only in designated areas.

Main Points for Successful Industrial Property Development

Many cities allocate different areas for the development of industrial estates. The following are some important points that need to be considered to make industrial estate success:


The first point for making industrial estates successful is location. Like real estate, location plays an important role in making any industrial estate successful. It must have access to many alternative transportation modes such as national highways, train stations or even ports.

The higher the number of alternative transportation modes, the higher the opportunity for the industrial area. Many workers will be needed to work in the factories set up within industrial estates. If the company wants to attract qualified workers but with low wages, the company can open industrial estates in the suburbs.

Infrastructure Services

The second point for making industrial estates successful is the availability of infrastructure services. When high-quality infrastructure is established within the region, industrial companies will immediately start flocking to establish their business in the area. Industrial estates generally require different services such as high voltage electricity, sewage treatment, internet, etc.

Smart Management

The other points for making industrial estates successful is to do smart management in the company. Setting up and running a plant tends to be a difficult task unless external assistance is considered. Most successful industrial estates around the world will provide services to their tenants such as marketing assistance, procedural support, information, government regulation, etc. Many times, they also helped tenants connect with their counterpart such as distributor, vendor to support the supply chain process.

Ideally the factories find their supply chain nearby their location so they can be more efficient and making sure the plant will be sustainable, making it a win-win situation for area management and factory owners.

Those are several points needed to make industrial estates a long-term success. In addition, support from external parties such as the government is very important to be able to improve the process of growing industrial estates.

One industrial area that has complete infrastructure is Karawang New Industrial City (KNIC). Located in the center of the West Java industrial area, this industrial estate has complete facilities ranging from transportation, power sources to the latest technology.

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