Indonesian developer Agung Podomoro plans 4.5 trillion rupiah housing project in new capital
ONE of Indonesia’s largest real estate companies, Agung Podomoro Land, plans to build apartment buildings worth more than 4.5 trillion rupiah (S$373 million) in the new capital of Nusantara, the city authority told Reuters.
President Joko Widodo has sought to reassure investors and bureaucrats that the US$32-billion new capital city will move forward, after two officials leading the project resigned this month, prompting fresh doubts about its future.
The housing deal is one of the first by a private company in the city being built amid the jungles of Borneo, through a public-private partnership scheme.
Agung Podomoro will partner the city authority’s business unit, Bina Karya, to build 15 apartment towers, the unit’s president director, Boyke Soebroto, told Reuters.
Agung Podomoro did not comment on the details provided by Bina Karya, but company spokesperson Justini Omas said partnership talks were underway.
Last year, the city authority said it was in talks with private developers, including some from China and South Korea, for residential projects worth US$2.7 billion in Nusantara, but those did not pan out.
Agung Podomoro’s porfolio includes residential and commercial properties, among them superblocks in the centre of Jakarta, the current capital.
Developer Pakuwon Jati will also build a superblock, which groups a mall, a condominium and hotels, in Nusantara, in a project worth five trillion rupiah.
Widodo has said he wanted to declare Nusantara as the new capital this year, and expects thousands of civil servants to move there in September from overcrowded and polluted Jakarta. REUTERS
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