A distribution business, a building supplies shop or a wholesale grocery agent reaches a point where the back room is no longer enough. The question is almost always the same: rent first, or buy straight away?

There is no answer that fits every business. What there is: a cash-flow calculation, an estimate of how long you will need the space, and a list of things to check in the building.

This guide is for businesses looking for a warehouse, especially around Banjarmasin and Banjarbaru. It covers weighing renting against buying, the physical and legal checks, location choices and running costs.

Weighing renting against buying

A few questions help you decide:

  • Cash flow. Buying ties up a large amount of capital, or adds debt, that could otherwise fund stock and customer credit. Renting keeps the money working.
  • How long you need it. If you aren’t sure the space will still be enough in five years, renting leaves room to move. A stable long-term need fits buying better.
  • Fit-out. Racking, an office, a cold room and extra power capacity become part of the building. In a rented warehouse, that investment stays behind when you leave.
  • An asset and collateral. A warehouse you own can secure a business loan.

Worked example (illustrative numbers only): renting at Rp 100 million a year, or buying for Rp 2 billion. Over ten years you pay about Rp 1 billion in rent, before any increases. If you buy, Rp 2 billion is locked in the building, plus the Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB, the acquisition duty) at purchase, and the Pajak Bumi dan Bangunan (PBB, the annual land and building tax), upkeep and insurance every year.

Compare that with what the Rp 2 billion could earn if it stayed in your business. If the business would earn more on that capital than the rent you save, renting usually makes more sense.

If you rent, ask for a long enough term with a renewal option, so the racking and fittings you install have time to pay for themselves. Write down who covers repairs to the roof and structure, and the condition the warehouse must be in when you hand it back.

Truck access and loading

A good warehouse that trucks struggle to reach slows down every delivery.

  • The access road. Measure its width, check its condition, and note any small bridges over drains or rivers on the way.
  • Turning space. Make sure your largest truck can get in, turn and leave without reversing far into the road.
  • The loading area. Check whether the warehouse floor height suits your truck beds, and whether the loading area is roofed so goods stay dry.
  • Door and gate widths for trucks and forklifts.
  • Road rules. Some roads may restrict truck hours or loads. Ask the local transport office (dinas perhubungan).

The surest test is to try it with the truck you actually use, in the rain too.

The building: floor, height, roof and flooding

  • Floor strength. Ask for the floor’s design load, or have a civil engineer check it, especially for heavy goods such as cement, steel or fertiliser.
  • Floor flatness. Cracks and sunken patches make life hard for forklifts and racking.
  • Clear height, the distance from the floor to the lowest part of the roof structure. It decides how tall your racking can be.
  • Column spacing, which shapes the racking layout and forklift aisles.
  • Roof and gutters: look for old leaks, rust and gutters that overflow in rain.
  • Floor level against flooding. Much of the land around Banjarmasin is low-lying and tidal. Ask the neighbours about water in heavy rain and at high tide, and look for old water lines on the walls.

On low ground, warehouse sites are often filled land that can keep settling for years. How to check it is covered in our guide to buying filled land.

Power, fire safety and facilities

Machinery, cold rooms and electric forklift chargers usually need a three-phase connection and plenty of capacity. Check the installed capacity, then ask PLN about upgrading it or changing the connection, and the cost. A new installation needs a Sertifikat Laik Operasi (SLO, the electrical safety certificate).

A warehouse keeps a lot of goods in one place, so fire is a serious risk. Check for:

  • Enough fire extinguishers, still in date.
  • Exit routes that aren’t blocked by stacked goods.
  • Access for fire engines close to the building.
  • Tidy wiring, with no temporary connections left in place for good.

Check the supporting facilities as well: an office, toilets, clean water, a rest area for staff, fencing, lighting and a guard post.

Paperwork: certificate, PBG and zoning

Whether you rent or buy, check these three:

  • The certificate. Make sure the owner’s name matches. If it is a Hak Guna Bangunan (HGB, a time-limited right to build), check its term. Under Government Regulation (PP) No. 18 of 2021, an HGB runs for 30 years, can be extended by 20 and then renewed for 30.
  • The Persetujuan Bangunan Gedung (PBG). The PBG, the building approval that replaced the old IMB building permit, states the building’s function. Make sure that function suits a warehouse, and ask about the Sertifikat Laik Fungsi (SLF, the certificate that a building is fit for use) too.
  • Zoning. Check whether the spatial plan allows warehousing at that location. How to do it is in our guide to checking zoning before you buy.

If you are buying, the Pejabat Pembuat Akta Tanah (PPAT, the official who draws up land deeds) checks the certificate at the Kantor Pertanahan (land office) before the Akta Jual Beli (AJB, the deed of sale) is signed. A location that fits the zoning also makes it easier to get a Nomor Induk Berusaha (NIB, the business identification number) through the Online Single Submission (OSS) system.

Choosing a location around Banjarmasin

Judge a warehouse location from two directions: where goods come from, and where they go.

  • Goods arriving by sea. Pelabuhan Trisakti is Banjarmasin’s main port. A warehouse near the port shortens truck runs to and from the ships.
  • Customers in two cities. The Jalan A. Yani corridor linking Banjarmasin and Banjarbaru makes deliveries to both cities easier.
  • Distribution to Banua Anam. The six upriver regencies of South Kalimantan, from Tapin to Tabalong, are linked by the main road heading north from Martapura.

Land on the edge of town can give you more space for the same budget. But check the road access in the rainy season, the flood risk and the zoning.

Test the travel times at rush hour yourself rather than estimating them from a map.

Running costs once you move in

The purchase price or rent is only part of what a warehouse costs. Budget for:

  • PBB, billed every year to the owner. For a rented warehouse, write into the lease who pays it.
  • Insurance for the building and its contents, especially against fire.
  • Security, such as guards, CCTV and lighting.
  • Maintenance of the roof, gutters, floor and doors.
  • Pest control, especially rats and termites.
  • Electricity, including the fixed charge on a large connection.

If your business is an entity appointed as a tax withholder, you must withhold the final income tax (PPh final) of 10 percent from the warehouse rent and give the owner a withholding slip. It is explained in our guide to tax on rental income.

Next steps

  1. Write down your needs: floor area, clear height, truck size, floor load and power capacity.
  2. Compare the cost of renting with the cost of owning over ten years, including the capital tied up.
  3. Visit the shortlisted warehouses at rush hour and in the rain.
  4. Check the certificate, PBG and zoning before paying any deposit.

Warehouses and land currently marketed by Vorneo are on the property listings page.