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The industrial areas of DKI Jakarta are grappling with a phenomenon known as "ghost factories," a consequence of the significant exodus of businesses seeking more affordable operational environments. Industrial zones, including the Nusantara Bonded Zone (KBN) and Jakarta Industrial Estate Pulogadung (JIEP), are now dotted with deserted and abandoned factories, some bearing signs that read "For Sale/Rent" or are sealed due to local tax arrears.

Owners, particularly in labor-intensive sectors like garments, are increasingly relocating to areas in Central Java and West Java where labor costs are lower. This trend has not only altered the industrial landscape in Jakarta but has also led to reduced turnover for local traders who once thrived around these bustling factories.

The wave of factory relocations began several years ago, primarily triggered by debates over wage increases in DKI Jakarta. This has resulted in diminished turnover for local traders and a decline in production activities across many factories.

While a handful of factories, such as PT Dodo Activewear I and PT Hansae 6A on Jl Sumatra, continue to operate, the majority appear abandoned with rusty gates, overgrown vegetation, and faded walls.

The departure of these factories has raised concerns for workers who often face layoffs (PHK) due to factory closures or relocations. The once vibrant production hub is now witnessing a decline in manufacturing activities.

The Deputy Chair of the DKI Jakarta Indonesian Entrepreneurs Association (Apindo) Provincial Leadership Council, Nurjaman, identified high production costs in Jakarta, particularly the nearly IDR 5 million Provincial Minimum Wage (UMP), as the primary driver of the factory exodus. The labor-intensive sectors, such as textiles, find it challenging to sustain operations in Jakarta, compelling businesses to seek more cost-effective locations in Central Java and West Java.

PT Kawasan Berikat Nusantara (KBN) echoed a similar sentiment, emphasizing that the closure of factories is not solely attributed to high rental costs or taxes but is significantly influenced by the annual increase in UMP.

The Ministry of Industry acknowledges this relocation phenomenon as a natural response to expanding businesses and reducing production costs. Director General of Resilience, Regional and International Industrial Access (KPAII) Eko S. A Cahyanto agrees that enhancing competitiveness is a crucial factor in this ongoing industrial shift.

Concurrently, industrial areas in other regions are actively providing attractive facilities to entice businesses to invest. Some areas have transformed into advanced industrial zones, attracting industry interest to make adjustments and invest in more favorable environments.

The "ghost factory" phenomenon in Jakarta reflects the changing dynamics of the industrial landscape, where high production costs act as the driving force behind business actors seeking alternative, investment-friendly locations.