Wednesday, 28 May 2014

The latest developments in Indonesia

Property developer, The Blacksteel Group, has announced plans to construct projects worth $300million in various Indonesian cities until 2018. The Lippo Group stated the company will concentrate on developing property within remote areas.

One project is the development of Lombok City Center (LCC), a mall in Mataram, the capital of the island. Funds of the project are from a variety of sources combined from money from investor’s, internal cash and bank loans and money from investors. The LCC is expected to be completed by 2016 with investment for the project estimated at approximately Rp1trillion ($86million). The Lippo group claim LCC will boost the image of West Nusa Tenggara to transform to a modern province providing bright investment prospects.

Furthermore, LCC is assumed to open employment opportunities in the region, aid in propelling consumer purchasing power and boost the regional economy. Representatives from Lippo have also claimed Blacksteel intends to develop property projects in areas that big developers have not yet engaged with; concentrating on second and third tier Indonesian cities. This is with Blacksteel plans to construct 17 malls over the next five years.

Higher wages together with steady economic growth over recent years has given greater purchasing power to consumers of Indonesia’s Eastern provinces.

The company is currently developing the Ambon City Center (Maluku province) and Ponorogo City Center (East Java) malls.

Blacksteel is independent of the Lippo Group.

No comments:

Post a Comment