JABABEKA, PLAZA INDONESIA TO START $1B TOWNSHIP PROJECT IN JUNE

Jakarta. Plaza Indonesia Jababeka, a joint venture of Jababeka Industrial Area and Plaza Indonesia Realty, will start construction on a $1 billion township project in June after completing the planning for the 12-hectare project in Cikarang,West Java.

The first phase in the joint venture involves construction on the 12-hectare site for a mixed-use development that includes apartments, five-star hotel and a 50,000-square meter shopping mall,  Jababeka Industrial Area director Suteja Sidarta Darmono said on Wednesday. Completion is scheduled for 2018, and the company is targeting the expatriate community, he said.

“We are targeting expatriates, because there will be a lot of high-rise and superblock buildings. We predict that the monthly rent could reach $2,000,” Suteja said.

Jababeka Industrial Area owns 30 percent of the joint venture, while Plaza Indonesia owns 70 percent.

Aside from the 12 hectares, the company has four hectares of property that can be developed at any time.

As for other projects, Banten West Java (BWJ) Tourism Development, a subsidiary of Jababeka Industrial Area, plans to complete in 2022 the development of a Rp 4.38 billion ($3 million) special economic zone in Tanjung Lesung, West Java.

BWJ had invested Rp 1.4 trillion, while each potential tenant put in Rp 200 billion for that project, said BWJ president director Hyanto Wihadhi.

BWJ was working with five investors from Indonesia, China, the Middle East, and Australia to build hotels, villas, and beach clubs.

“We are trying to work with other 10 investors,” Hyanto said.