Property giant Agung Podomoro plans massive investment next year

The Jakarta Post , Jakarta | Mon, 10/06/2008 9:56 AM | Business

Property giant Agung Podomoro Group (APG) plans to increase its investment by 15 percent in Jakarta next year, on soaring demand for city accommodation because of public transportation difficulties.

APG marketing director Indra Antono told The Jakarta Post recently that the company would increase its investment to around Rp 2.64 trillion (US$283 million) next year from an estimated Rp 2.3 trillion for this year.

In the first half of this year, APG (whose hallmark projects include shopping centers Mangga Dua Square and Senayan City) had already spent some Rp 1.2 trillion.

APG's Podomoro City marketing manager Rubby Widjaja said while public transportation problems remained, many workers in the Jakarta area preferred to live near to their workplace than in suburban areas.

"People are preferring to live in downtown areas because they are tired of dealing with the traffic when making their way home to the suburbs," Rubby said.

With land in Jakarta becoming increasingly limited and expensive, many property companies are now racing to construct apartment blocks to tap into the booming demand for homes closer to workplaces.

Jakarta has a population of 12 million during working hours and 10 million at night, meaning there are potentially 2 million commuters who may be interested in purchasing city apartments.

Some people even bought apartments as their second home during weekdays, and their first houses were only occupied during weekends or holidays, Rubby said.

APG's investment will be allocated among 12 real estate projects currently in progress.

The company, which managed to survive the 1997 Asian financial crisis, is embarking on a massive project called Podomoro City in West Jakarta. Occupying a 21-hectare block, the project will consist of 15 apartment towers, malls and office areas.

APG was set up in 1969 by the late Anton Haliman. His son, Trihatma Kusuma Haliman, the 16th richest Indonesian in 2007 according to Forbes magazine, is now in charge of the empire.

As of 2006, APG has completed 16 apartments, 14 residential areas, and 12 commercial mixed-use areas. (imp)

Comments (0) | Post comment

A | A | A |