NWP Property, CRE Asia form JV to develop big-box logistics in Indonesia

Singapore

INDONESIAN consumer platform Nirvana Wastu Pratama (NWP Property), CRE Asia - a subsidiary of Japanese property firm CRE Inc - and Indonesia entrepreneur Bonny Setiawan have formed a joint venture (JV) to establish a big-box logistics platform in South-east Asia's largest economy.

The JV, which will be led by Setiawan as its chief executive officer, has secured its first warehouse in Jakarta, with construction expected to start in the second half of this year, said NWP Property and CRE Asia in a joint press statement on Tuesday (Mar 22).

The companies said there is an undersupply of modern logistics real estate in Indonesia.

"This strategic partnership is formed to establish a best-in-class, big-box logistics platform to meet the significant growth driven by the expansion of omni-retail platforms, rising needs from third-party logistics companies and fast-moving consumer goods (FMCG) company tenants," read the statement.

NWP Property's chief executive officer Timothy Daly said the supply of warehouse space in Indonesia is "meaningfully behind" its industrial peers. China and Japan, for example, have 10 to 40 times the warehouse space per capita compared to Indonesia.

The Indonesian company is backed by global private equity firm Warburg Pincus.

Setiawan, who has expertise in building modern logistics platforms, said that there is a significant opportunity to develop high-quality logistics assets to serve the growing demand from e-commerce and FMCG companies.