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.
