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ublicly listed developer Eureka Prima Jakarta is set to establish a superblock in East Jakarta with an initial investment totaling Rp 3 trillion (US$249 million).

The project is described as '€œthe first superblock in the country to have a creative-economy center'€.

Eureka '€” formerly known Laguna Cipta Graha Karya '€” launched its superblock project on Monday at a 21-hectare site near the well-known tourist destination, Indonesia Miniature Park.

Eureka Prima president director Lukman Purnomosidi said the project would run in four stages and take around 10 years to complete.

He said his company would start construction of the first stage of the project early next year and it was expected to start operations after three years. The company would source the Rp 3 trillion for the initial phase from its internal cash reserves and bank loans.

The first stage of the project will be built on a 2.8-hectare land and will consist of eight towers, four for apartments and the rest for offices and commercial purposes.

Lukman added that, out of the total capital, about Rp 1 trillion would be disbursed to establish a creative-economy center, in cooperation with Mercubuana University.

'€œThe creative-economy center will include restaurants offering menus from across the nation, as well as music, acting and fashion schools with the help of experts from Mercubuana University,'€ he told The Jakarta Post. '€œWe want to provide a one-stop shop for the economy-creative industry.'€

Lukman said the creative-economy center was behind the company'€™s decision to establish the superblock in East Jakarta '€” which has long been considered as unappealing to the property business.

'€œThe location for our project is near the cultural tourist attraction of Indonesia Miniature Park and relatively near to the commercial district on Jl. TB Simatupang [South Jakarta],'€ he explained.

Besides the East Jakarta superblock, the developer is also planning to build a penthouse in Senopati, South Jakarta, later this year '€” with a total investment of around Rp 350 billion.

Eureka saw its first-half revenue plummet by 94 percent from Rp 5.8 trillion last year to Rp 329.17 billion this year. It recorded a total net loss of Rp 2.06 trillion during the period, compared to Rp 107.56 billion in net profits it registered in the first half of last year.

'€œOur financial performance was poor in the first half because we didn'€™t have new sales this year. We decided not to launch any projects until the legislative election and the presidential election concluded to ensure a better investment atmosphere,'€ he explained.

Shares of Eureka '€” traded under the code LCGP on the Indonesian Stock Exchange (IDX) '€” rose by 1 percent to close at Rp 457 after it announced the superblock project.

Meanwhile, Surya Semesta Internusa announced the launch of the first phase of its 6.3-hectare Suryacipta Square business district with an investment of Rp 227 billion, on Thursday.

The location '€” expected to be the first business district in Karawang, West Java '€” will offer a wide range of commercial facilities, including the Batiqa Hotel and Apartments, a three-star business hotel, the Manor office tower and the Promenade '€” a retail and food plaza.

Through its subsidiary, Suryacipta Swadaya, the company said it would continue the development of the second phase, which will include a golf course and an international hospital, eventually covering a total area of 9 hectares.

Surya Semesta is optimistic that the development will increase its recurring income in the upcoming years, according to the company'€™s press statement filed with the IDX on Monday.

Currently the Suryacipta Industrial City, in which the district is located, is occupied by 136 companies '€” of which 98 have begun operations. Eight more manufacturers will start operating by 2015.

The company claims the development has created up to 27,000 job opportunities so far.

Surya Semesta (SSIA) shares closed trading on the IDX at Rp 780 on Monday, down by 2.5 percent from the previous close.

'€” JP/Anggi M. Lubis