Sinarmas, Mitsubishi, Surbana tie up for transit-oriented developments in Indonesia

A SUBSIDIARY of Sinarmas Land has entered into a strategic partnership with Mitbana, a joint-venture fund management company of Mitsubishi Corporation and Surbana Jurong.

This is to develop smart and sustainable transit-oriented developments (TODs) in Bumi Serpong Damai (BSD) City, Indonesia, Sinarmas Land and Mitbana said in a joint statement on Saturday.

Mitbana is a Singapore-headquartered urban development fund established in March 2019 that focuses on TOD and township projects in Asean and South Asia. By leveraging the experience and expertise of Mitsubishi Corporation and Surbana Jurong, it aims to accelerate such developments with the support of institutional capital from third parties, the joint statement said.

The Sinarmas Land subsidiary is Bumi Serpong Damai (Sinar Mas Land), a property developer in Indonesia which has developed more than 50 projects in the country. Its flagship town development is BSD City, located in Tangerang in Greater Jakarta.

BSD City spans a total land area of about 6,000 hectares. It was developed since the mid-1980s and has businesses, schools, shopping malls, hospitals, hotels and convention centres. It is home to the Apple Developer Academy - co-run by Apple and a local university - as well as ride-hailing firm Grab's innovation and engineering lab.

Mitbana will work with Sinar Mas Land to transform over 100 hectares of greenfield land in BSD City into TODs, comprising residential units, commercial properties, living amenities and public transport nodes. This undertaking will enlarge BSD City's existing development footprint, and expand on its current population of 200,000 residents, the joint statement said.

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Sinar Mas Land group chief executive officer Michael Widjaja said with this commitment, Mitbana will become Sinar Mas Land's largest development partner in BSD City.

Mitbana chairman and Surbana Jurong group chief corporate officer Chong Lit Cheong said Surbana Jurong will support the endeavour with its multidisciplinary urban and infrastructure solutions, while Mitsubishi Corporation lends its complementary urban development expertise. (see amendment note)

Mitbana's partnership with Sinar Mas Land builds on existing collaborations among Mitsubishi Corporation, Sinar Mas Land and Surbana Jurong.

Within BSD City, Mitsubishi Corporation has embarked on a gated-residential development project with Sinar Mas Land called The Zora, which utilises the former's smart home technology.

Separately, Sinar Mas Land, together with Indonesian conglomerate Citra Mas, have engaged Surbana Jurong to develop a concept master plan for a 62-hectare eco-digital project in Nongsa, Batam.

Shares of mainboard-listed Sinarmas Land were trading up 3.3 per cent or 0.5 Singapore cent to 15.6 cents as at 10.13am on Monday.

Amendment note: A previous version of this article incorrectly stated the designation of Chong Lit Cheong. He is in fact the group chief corporate officer of Surbana Jurong.