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Intiland close to realizing township
Publicly listed developer Intiland Development is moving closer to realizing its huge reclamation project and its beachfront township in North Jakarta as the company expects to start the project in the second quarter of next year at the latest
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ublicly listed developer Intiland Development is moving closer to realizing its huge reclamation project and its beachfront township in North Jakarta as the company expects to start the project in the second quarter of next year at the latest.
The company stated last year it would commence the reclamation project on an island in the Pantai Mutiara area as soon as the presidential election was over and company spokesperson Theresia Rustandi said that the company had pocketed all the principal permits.
'We are now in the process of acquiring our reclamation permit. We will start construction in the first quarter of 2015, or in the second quarter at the latest,' she told The Jakarta Post on Wednesday.
The company is planning to reclaim 63 hectares of land off North Jakarta's coastline, which would require an investment of roughly Rp 7.5 trillion (US$ 618.31 million) disbursed in stages over at least four years.
Theresia said that investments were expected to multiply once the reclamation concluded and the company started its township project on top of the land.
'The reclamation project itself might take around four years to wrap up in 2019. After that, we will develop a mixed-use area that includes residential and commercial buildings,' she explained.
'The development project is going to be huge and might consume around 15 years ' including the reclamation ' to conclude.'
Sometime around 1984, the developer began reclaiming land upon which Pantai Mutiara, an upscale residential area, currently stands. The developer has also completed the first phase of Regatta, a project that involves the construction of 10 apartment towers on 11 hectares of land in the area.
The company's 2015 reclamation project is part of the Jakarta administration's scheme to develop 17 artificial islets as part of the National Capital Integrated Coastal Development (NCICD) program off Jakarta's north coast.
Albeit hosting several upscale residential developments, the northern coast of Jakarta is often flooded because of land subsidence. The NCICD aims to cope with the problem.
The total area for the NCICD project ' which also involves fellow developer Agung Podomoro Land ' is expected to expand Jakarta's administrative area by more than 5,000 hectares.
This year, Intiland Development said it set a 'moderate' annual marketing sales growth of 10 percent as a response to a cautious market during the election year.
The company expected to generate Rp 2.8 trillion in marketing sales this year, compared to the Rp 2.53 trillion it booked last year.
The targeted growth is far below the company's 53.3 percent marketing sales growth last year, which surpassed its initial Rp 2.2 trillion target.
The moderate target was in response to the cautious market conditions experienced during the April 9 and July 9 elections, as well as the government's latest mortgage regulation that hit the country's listed developers' financial performance throughout the year.
The developer recorded a 11.75 percent year-on-year increase in its revenue in the first half of this year to Rp 854.78 billion, while its net profit rose by 42.31 percent to Rp 199.92 billion during the same period.
Intiland has prepared Rp 250 billion in investments to build five new hotels this year. The company has so far constructed and developed six hotels under the Intiwhiz brand.
