New residential project in Papua

A subsidiary of property giant Ciputra Development, Ciputra Surya will begin construction on a new residential project by the end of this year in Jayapura, marking the company’s venture into Papua Island.

The project will compose approximately 38hectares of landed residence, as reported by the director of Ciputra Surya.

The listed property developer is presently undergoing preparations for construction, having already assessed the potential of Jayapura from flight frequencies to purchasing power.

With a population higher than 273,000 people, Jayapura is the Papua province capital.

Ciputra Surya’s director went onto explain that this project will allow them to officially be on both ends of the Indonesian archipelago.

Ciputra Surya’s portfolio is currently concentrated in Surabaya, East Java — including townships, landed residential areas and mixed use projects.

The president director of Ciputra Surya claimed the project will cater to buyers from both the middle to upper class.

Papua has experienced the initiation of high-profile projects from companies including BP and Freeport, expecting them to bring prosperity into the area. This contradicts Papua’s reputation as one of the humbler provinces of Indonesia – The province is one of many regions developing!

Furthermore, the government’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), a 15-year, Rp4,000trillion ($340trillion) infrastructure blueprint, is extensively expected to shoot economic growth in Papua.

Numerous developers, such as Ciputra, are beginning to explore opportunities beyond Java as land reserves in Indonesia’s most populated island gradually shrink.

However, there are still scarce competitors in the area. There are local developers who are relatively small.

The director highlighted that quality continues to be the top priority of Ciputra’s developments, claiming that the company’s previous projects, situated in less urbanised areas, have become some of the top residences in the neighbourhood - the standard coming from Surabaya and Jakarta to those areas.

Ciputra Surya also has plans to begin development of another residential project in Palu, Central Sulawesi, later this year, covering approximately 18hectares.

Ciputra Surya aims for revenue to increase by 25% to Rp1.5trillion this year. However, the company forecasts a 31% decrease in marketing sales to Rp2.2trillion on slower sales of projects established last year.