TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
MNC Land plans Rp 1.2t capex
Change Size
Hary Tanoesoedibjo (JP/Ricky Yudhistira)
P
ublicly listed developer MNC Land, owned by tycoon Hary Tanoesoedibjo, is still optimistic about the country’s economy this year as it plans capital expenditure (capex) to support business expansion.
MNC Land finance director Dipa Simatupang said the company was currently planning capex worth Rp 1.2 trillion (US$90.1 million) this year that would be used to support its non-major construction projects.
The non-major construction projects include Media Tower and Park Hyatt in Jakarta, One East Residence in Surabaya, East Java as well as Lido Golf in Bogor, West Java.
“The capex will be used for our projects outside the main ones, which comprise Lido Resort and Nirwana Resort in Bogor,” he said at a press conference on Wednesday.
Regarding the main projects, Dipa said the company had yet to calculate the exact amount of capex allocated as it was currently discussing with related parties, such as consultancy firms and operators, which include a hospitality business owned by US real-estate tycoon and aspiring presidential candidate Donald Trump.
Signing a partnership agreement with MNC Land last year, Donald Trump’s Trump Hotels Collection would help the company develop the Lido Resort, which is expected to start its full commercial operations in 2019.
The Lido Resort, located in Bogor was once owned by the politically wired conglomerate Bakrie Group and covered 3,000 hectares. It will comprise three components, namely a hospitality wing, a golf course and a theme park.
Trump will develop the hospitality and golf course component, while MNC Land will partner with another US firm specializing in entertainment for the theme park, MNC Land vice president of business development Ivan Casadevall said previously.
Lido will be Trump’s second partnership and second six-star hotel after previously signing on for a project in Bali.
In addition to that, Dipa said 70 percent of the company’s capex this year would come from bank loans, with the rest from equity and internal cash, which was contributed by the remaining funds from a rights issue last year. (dmr)
