By Sonia Adriaty, Industrial Park

In an era marked by ongoing globalization and digitalization, supply chains and logistics have become the backbone of industrial activity—particularly in industrial parks. As hubs of manufacturing and distribution, these parks rely heavily on the efficiency of logistics systems and coordination across the supply chain to remain competitive in the global market. However, today’s global dynamics—including geopolitical tensions, energy crises, and increasing sustainability pressures—have profoundly affected the stability of supply chains and logistics systems worldwide. Recent global shocks—from the COVID-19 pandemic, major trade wars, to armed conflicts disrupting strategic trade routes—have demonstrated the vulnerability of global logistics to external disruptions.

Global Disruptions and Their Impact on Supply Chains and Logistics 

1. Geopolitical Tensions and Trade Wars

Conflicts such as the war in Ukraine, U.S.-China tensions, and the Israel-Iran conflict have disrupted international trade routes. The Strait of Hormuz, through which over 20% of global oil supply passes, and Houthi attacks on Red Sea shipping lanes have forced many shipping operators to reroute via the Cape of Good Hope, increasing logistics costs by as much as 40%. In response, more countries are adopting nearshoring and friendshoring strategies to mitigate geopolitical risks.

2. Energy Crisis and Global Inflation

Conflict-driven volatility could push global oil prices to USD 95–100 per barrel by Q1 2025. Rising energy prices are driving up transportation and production costs. In this context, logistics resilience has become a priority—making industrial parks with direct access to energy sources and multimodal transport increasingly strategic.

3. Climate Change and Environmental Regulation

Carbon regulations and net-zero commitments are prompting businesses to seek environmentally certified industrial zones and parks that support sustainable logistics operations.

4. Digital Transformation and Automation

The COVID-19 pandemic accelerated supply chain digitalization. Industrial parks with advanced IT infrastructure that support cross-company system integration are better positioned to navigate uncertainty and maintain competitiveness.

In addition, growing demands for sustainable business practices are pushing industrial parks to adopt principles of green logistics and circular supply chains. Changing consumer behavior, tighter environmental regulations, and global carbon reduction pledges are forcing industries to realign their logistics systems to be more resilient and eco-friendly.

Industrial Parks as Strategic Supply Chain Hubs

Indonesia’s logistics and warehousing sectors are projected to grow by 12.53% in 2025, with sub-sectors—driven by manufacturing, trade, agriculture, forestry, and fisheries—expected to grow by 18.26%.

Industrial parks are designed to integrate various production and distribution activities in a single interconnected location. They play a key role in supply chain efficiency and resilience through:

1. Integrated Logistics Infrastructure: Most Indonesian industrial parks are strategically located near airports, seaports, and railway stations—facilitating efficient goods distribution.
2. Supporting Facilities: Several parks offer sea-port access or dry port facilities that serve as inland extensions of major ports, expediting customs and distribution processes.
3. Reliable Utilities:Electricity and gas needs are largely provided by state utilities PT PLN and PT PGN, ensuring energy security for industrial operations.

In this ecosystem, supply chains ensure timely access to raw materials, efficient production processes, and optimized delivery of finished goods to global markets. The presence of logistics infrastructure such as ports, toll roads, railways, and distribution centers is vital to enabling the smooth flow of goods. Today, many parks are adopting Internet of Things (IoT), artificial intelligence (AI), and digital supply chain management systems to enhance visibility and resilience.

Industrial Park Initiatives to Strengthen Supply Chain Resilience

Industrial parks today go beyond hosting factories—they actively support national and global supply chain resilience through the following strategic initiatives:

1. Integrated Infrastructure Development

Industrial parks are investing in integrated logistics systems to shorten delivery times and reduce logistics costs, including:

• Dry ports connected to major seaports
• Internal rail networks for raw material and product distribution
• Shared logistics hubs to optimize warehousing

2. Ready-to-Use Industrial Zones

Many parks now offer plug-and-play zones that accelerate relocation or expansion for multinational firms needing to shift supply chains quickly due to global disruptions. These zones, primarily located on Java Island, have already attracted significant investment. In addition to land, many parks also provide rental factories—ready-built manufacturing facilities available for lease to facilitate logistics companies’ entry.

3. Collaborative Supply Chain Management

Parks promote inter-tenant collaboration in bulk procurement, shared logistics, and integrated production systems. For example, Batamindo Industrial Park in Batam has implemented a Shared Procurement & Logistics model. As a long-standing hub for electronics and light manufacturing, the park enables companies to share logistics vendors, export-import services, and warehousing.

4. Supply Chain Control Centers

Some industrial parks now operate advanced command centers to monitor logistics flows, weather conditions, and supply risks in real-time. In Greenland International Industrial Center (GIIC) in Cikarang, for instance, a smart infrastructure monitoring system integrates logistics CCTV, water and utility sensors, and direct communication between tenants and park operators. Similar smart-city-aligned systems are being developed in other parks.

5. Green Supply Chain Initiatives

Parks actively support the transition to greener logistics through:

• Renewable energy infrastructure (e.g., solar farms, biogas) – exemplified by the Batang Integrated Industrial Park (KITB), which integrates rooftop solar across factories
• Use of electric vehicles (EVs) for logistics and security patrols, alongside EV charging stations at logistics hubs
• Shared industrial wastewater treatment facilities with monitoring systems linked directly to the Ministry of Environment

6. Partnerships with Government and Logistics Stakeholders

Industrial parks collaborate with ports, customs, and transportation authorities to streamline export-import processes, reduce bureaucratic bottlenecks, and expand market access. A notable example is Jababeka Industrial Park, which partners with Tanjung Priok Port and Pelindo II to enable direct logistics links. Its dry port is connected via rail for container shipping and equipped with an integrated customs clearance system.

Conclusion

Supply chains and logistics are inseparable from the sustainability and competitiveness of industrial parks. In the face of global uncertainties, these parks are not just production sites—they are strategic actors safeguarding supply chain stability. Industrial parks in Indonesia must become more adaptive to global risks by developing flexible, competitive, and disruption-resilient supply chain infrastructure. With improved infrastructure, cross-company collaboration, digital transformation, and a sustainability focus, industrial parks can serve as the foundation of a more robust and future-ready economy.

Source:

Skylight Analytics Hub

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