Characteristics of Cikarang and Karawang in Indonesia: Advantages and Considerations for Japanese Companies Expanding into the Region
- Publish
- 2025/06/18
- Update
- 2025/06/18
- You can read this article in 9minutes
- Basic Information on Cikarang and Karawang
- How to Get to Cikarang/Karawang from Japan
- Key Industries in Cikarang and Karawang
- Major Industrial Parks and Japanese Companies Operating in Cikarang and Karawang
- Considerations for Expanding into Cikarang and Karawang
- Cikarang and Karawang: Cityscapes and Industries in Video
- Conclusion
Cikarang and Karawang, located in West Java Province of Indonesia, are attracting significant attention as prime destinations for Japanese companies seeking to expand.
With convenient access from Jakarta, Cikarang and Karawang are home to numerous well-developed industrial parks. The area has seen a strong influx of Japanese companies, particularly in the manufacturing sectors such as automotive and electronic equipment. In recent years, infrastructure improvements in transportation, as well as the development of residential and commercial facilities, have created an increasingly comfortable living environment for Japanese expatriates and their families.
This article will introduce basic information about Cikarang and Karawang, key industries, advantages of expanding into the region, and important considerations.
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Basic Information on Cikarang and Karawang
Location, Area, and Population
Source: Google Maps
Cikarang
Cikarang is a city in Bekasi Regency, West Java Province, located approximately 50 km southeast of central Jakarta. It is divided into five areas—north, south, east, west, and central. The total area is about 250 km², and the population is approximately 800,000.
Karawang
Karawang Regency in West Java is situated directly east of Cikarang and borders Bogor to the south. The main urban centers are West Karawang, adjacent to Cikarang, and East Karawang to its east. The eastern part of the regency is home to older urban areas, while the southern region consists of hilly terrain. The total area is about 1,900 km², with a population of approximately 2.57 million.
References:
Open Satu Data Kab. Bekasi: “Luas Wilayah Menurut Kecamatan Kabupaten Bekasi,” “Jumlah Penduduk Berdasarkan Jenis Kelamin Tahun 2023”
Badan Pusat Statistik Kabupaten Karawang: “Luas Daerah dan Jumlah Pulau Menurut Kecamatan di Kabupaten Karawang, 2023”
databoks: “Update 2024: Jumlah Penduduk Kabupaten Karawang 2,57 Juta Jiwa”
Climate
The lowland areas of West Java Province, including Cikarang and Karawang, share the same tropical climate as much of Indonesia, including Jakarta. The region experiences two main seasons: the rainy season from around October to March, and the dry season from around April to September. In 2023, the average annual temperature across Indonesia was 27.2°C, while in Bekasi Regency it was 26.5°C.
In Karawang Regency, which stretches north to south, the hilly areas near Bogor rise above 1,000 meters in elevation, resulting in cooler temperatures compared to the lowlands.
References:
Badan Pusat Statistik Kota Bekasi: “Rata-Rata Suhu, 2020–2023”
GoodStats: “Simak Rata-Rata Suhu Tahunan di Indonesia”
Transportation
Railway
The Cikarang Line of the KRL Commuter Line, operated by KAI Commuter, connects central Jakarta to Cikarang Station. It takes approximately 50 minutes on a direct train from Manggarai Station, Jakarta’s main terminal, to Cikarang Station.
Heading east from Cikarang, the Walahar and Jatiluhur commuter lines operate as medium-distance trains. The journey from Cikarang Station to Karawang Station takes approximately 20 to 30 minutes.
In addition, the Karawang Station of the Jakarta–Bandung high-speed rail service “Whoosh” commenced operations in December 2024. The travel time is approximately 15 minutes from Jakarta and about 20 minutes from Bandung (Padalarang Station) to Karawang Station. Roughly half of the daily trains stop at Karawang Station.
Bus
Both areas are served by local buses and shared taxis called Angkot (short for “Angkutan Kota”).
Medium- and long-distance buses also run between Jakarta and the two regions. Additionally, shuttle buses connect integrated developments such as Lippo Cikarang and Meikarta Cikarang with central Jakarta areas like Blok M.
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How to Get to Cikarang/Karawang from Japan
From Japan to Jakarta
There are direct flights from Narita Airport and Haneda Airport to Jakarta (Soekarno-Hatta International Airport), with a flight time of approximately 8 hours. Flights from other airports such as Kansai International Airport require a connecting flight (as of April 2025).
From Jakarta (Soekarno-Hatta International Airport) to Cikarang/Karawang
By Train
To Cikarang
From Soekarno-Hatta International Airport Station, take the Soekarno-Hatta Airport Rail Link to Sudirman Baru Station (approx. 50 minutes). Transfer to the Cikarang Line to reach Cikarang Station in about 1 hour.
Fare: 75,000 IDR (approx. USD 4.69) to Sudirman Baru Station, and 5,000 IDR (approx. USD 0.31) to Cikarang Station.
To Karawang
From Sudirman Baru Station, take the Cikarang Loop Line to Bekasi Station (approx. 35 minutes), then transfer to KAI services to Karawang Station (approx. 35 minutes).
Fare: 3,000 IDR (approx. USD 0.19) from Sudirman Baru Station to Bekasi Station. Fare from Bekasi Station to Karawang Station varies by train type and seat class, ranging from 50,000 to 200,000 IDR (approx. USD 3.13 to USD 12.50).
By Bus
To Cikarang
From the bus stop at Terminal 3 (international terminal) of Soekarno-Hatta International Airport, Damri buses run to Cikarang Bus Terminal.
Service interval: Every 1 hour
Travel time: Approx. 2 hours 20 minutes
Fare: 120,000 IDR (approx. USD 7.50)
To Karawang
Damri also operates buses to Grand Taruma Karawang, a residential area in West Karawang, though buses run less frequently, about every 2 hours.
Fare: 160,000 IDR (approx. USD 10.00)
By Taxi
Taxis are also convenient from each terminal at Soekarno-Hatta International Airport. In addition to the fare, highway tolls are charged separately.
To Cikarang
The distance from the airport to Cikarang Station is about 70 km. Under smooth traffic conditions, the journey takes around 1 hour 20 minutes.
Fare (Bluebird Taxi): approx. 400,000 IDR (approx. USD 25.00)
To Karawang
The distance to Karawang Station is about 90 km. Under smooth traffic conditions, the journey takes around 1 hour 40 minutes.
Fare (Bluebird Taxi): approx. 500,000 IDR (approx. USD 31.25)
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Key Industries in Cikarang and Karawang
Manufacturing
Cikarang and Karawang are home to a concentration of industrial parks, with numerous factories producing automobiles, motorcycles, and electronic equipment. In addition, the regions are also thriving centers for the textile industry and food and beverage manufacturing.
Logistics and Warehousing
Due to the large number of factories, there is consistently high demand for logistics services in Cikarang and Karawang.
In addition to being adjacent to Jakarta, the regions benefit from their proximity to Bandung, the capital of West Java Province and Indonesia’s third-largest city. The excellent location provides convenient access to major expressway interchanges, airports, and ports. The construction of new expressways is also progressing.
Other Service Industries
With the increasing population in Cikarang and Karawang, residential complexes, hotels, commercial facilities, and hospitals are being developed, making the service industry one of the key sectors. There is a significant Japanese community, with Japanese-oriented serviced apartments and Japanese schools available.
Many residents in areas near the urban centers of Cikarang and Karawang are employees of factories in the industrial parks, including a large number of expatriates. As a result, purchasing power is relatively high, and consumption activity is generally robust.
Real Estate
Urbanization is advancing in Cikarang and Karawang, driving active real estate development. With abundant available land, large-scale residential and commercial developments continue to emerge. Particularly in Cikarang, the area is gaining attention as a commuter town for the overcrowded Jakarta.
Agriculture
While Cikarang and Karawang are well known for their industrial sectors, they are also prominent agricultural regions. Karawang, in particular, is one of Indonesia’s key food production areas, producing rice, corn, soybeans, sweet potatoes, cassava, and other crops.
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Major Industrial Parks and Japanese Companies Operating in Cikarang and Karawang
Along the main roads connecting Cikarang and Karawang, more than ten industrial parks have been established. Some of these parks were developed by Japanese companies such as Sumitomo Corporation, Itochu Corporation, Marubeni Corporation, Sojitz Corporation, and Taisei Corporation.
In addition to Japanese companies, the industrial parks in Cikarang and Karawang host numerous foreign companies from countries including Singapore, the United Kingdom, Germany, South Korea, China, Malaysia, and Taiwan. Below are examples of industrial parks with a significant presence of Japanese companies:
MM2100 Industrial Town (Cikarang)
Located in western Cikarang, near the border with Jakarta, MM2100 Industrial Town was established in 1990. It covers an area of 805 hectares and has attracted approximately 190 companies. It is a well-known industrial park recognized as one of Indonesia’s best.
Key Japanese Companies in MM2100:
- Toyota Boshoku
- Denso
- NYK Line
- Marubeni
- Mandom
- Honda
- Toyota
- Suzuki
EJIP (Cikarang)
East Jakarta Industrial Park (EJIP), located to the east of MM2100, was also established in 1990. It spans 320 hectares and hosts around 90 companies, primarily in manufacturing and service industries.
Key Japanese Companies in EJIP:
- Ajinomoto
- Gunze
- Hitachi Transport System
- Idemitsu Kosan
- Sumitomo Electric Industries
- Nitto Denko
- Omron
- Epson
- Sanyo
Jababeka Industrial Estate (Cikarang)
Located north of EJIP across a main road, Jababeka Industrial Estate is the largest industrial park in the area. Established in 1989, it covers 2,000 hectares and is home to over 2,000 companies.
In addition to industrial facilities, Jababeka features a Central Business District (CBD) with commercial facilities, office buildings, and hotels, making it the commercial hub of Cikarang.
Key Japanese Companies in Jababeka:
- Kao
- Komatsu Group
- Nissin Foods
- Fukoku
Delta Silicon Industrial Park (Cikarang)
Further east from EJIP is Delta Silicon Industrial Park. Established in 1987, it covers 1,645 hectares and hosts more than 1,200 companies. It also provides residential, commercial, and business facilities.
Key Japanese Companies in Delta Silicon:
- Toyota
- Hyundai
- Mitsubishi
KIIC (Karawang)
Karawang International Industrial City (KIIC), located in western Karawang, is the largest industrial park in Karawang. Established in 1993, it spans 1,500 hectares and accommodates around 160 companies. Since 2015, KIIC has also been offering warehouse leasing services within the park.
Key Japanese Companies in KIIC:
- Toyota
- Yamaha
- Isuzu
- Daihatsu
- Dai Nippon Printing
- Daikin Industries
- Kawai Musical Instruments
- Sharp
- Panasonic
- Mitsubishi Electric
- Unicharm
- P&G
- Kao
- Ajinomoto
- Meiji Seika
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Considerations for Expanding into Cikarang and Karawang
While Cikarang and Karawang offer numerous advantages for companies expanding into the region, there are also several important considerations to keep in mind:
Land and Building Costs
The more favorable the location, the higher the costs of land and building rentals tend to be. Additionally, inflation poses a risk of future cost increases.
Labor Costs
In Indonesia, medium- and large-sized enterprises are required to comply with the regional minimum wage set annually by local governments.
The regional minimum wages in Cikarang (Bekasi Regency) and Karawang are among the highest in Indonesia. In 2025, the minimum wages for these regions even exceeded that of Jakarta, which typically holds the highest provincial wage level.
Comparison of Minimum Wages (2025):
- Cikarang (Bekasi Regency): 5,558,515 IDR (approx. USD 347.41)
- Karawang Regency: 5,599,593 IDR (approx. USD 350.00)
- Jakarta Special Capital Region: 5,396,761 IDR (approx. USD 337.30)
- National Average: 3,315,728 IDR (approx. USD 207.23)
References:
Kompas.com: “Daftar Lengkap UMP dan UMK Jawa Barat 2025”
Kementerian Ketenagakerjaan RI: “Upah Minimum Provinsi (UMP) di Indonesia Tahun 2025”
Manufacturing Recession
From 2024 to 2025, a wave of factory closures and large-scale layoffs occurred as many manufacturing companies underwent bankruptcies or business restructurings. The companies most affected were in the textile sector, which faces fierce price competition from imported products and depends heavily on imported raw materials.
Other manufacturing sectors also face uncertain prospects. Companies that rely on low-cost labor and neglect to update equipment, technology, or innovation risk falling behind changing industry demands and economic conditions in Indonesia and neighboring regions.
Traffic Congestion
As is common in many Indonesian urban areas, severe traffic congestion, particularly during weekday mornings and evenings, is a notable drawback in both Cikarang and Karawang. Traffic jams are also frequent near airports and ports.
Highway conditions require attention as well. For example, the Jakarta–Cikampek Toll Road, which runs east from Jakarta through Cikarang and Karawang, is prone to major traffic jams during long holiday periods due to increased travel by returning residents and leisure travelers.
Therefore, it is essential to monitor traffic patterns and understand when and where congestion is likely to occur.
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Cikarang and Karawang: Cityscapes and Industries in Video
The Largest AEON Mall in Southeast Asia
Watch the video
AEON Mall Deltamas in Cikarang opened in 2024 as the largest AEON Mall in Southeast Asia. Since its opening, it has become a popular leisure destination, attracting many visitors from Jakarta and surrounding areas. This video also shows the road conditions around the AEON Mall.
KIIC Industrial Park in Karawang
Watch the video
This video introduces the Karawang International Industrial City (KIIC). It shows the orderly arrangement of factories belonging to companies such as Yamaha, Unicharm, Toyota, Ajinomoto, and Sharp.
Conclusion
Given their location and well-established industrial infrastructure, Cikarang and Karawang will undoubtedly continue to be attractive destinations for Japanese companies. However, it is equally important to be mindful of rising land and labor costs, fluctuations in the overall manufacturing sector, and severe traffic congestion.
For companies considering expansion, it is essential to stay well-informed with the latest local developments, choose reliable partners, and implement sound risk management. Developing strategies that are aligned with local needs and economic trends from a long-term perspective will be key to achieving success.
For companies interested in entering the Indonesian market, please do not hesitate to contact PT. TRICRUISE MARKETING INDONESIA.
For Those Interested in Starting a New Business in Indonesia
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