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Jakarta Post

Lippo to build new city worth Rp 278 trillion

Winny Tang (The Jakarta Post)
Jakarta
Thu, May 4, 2017

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Lippo to build new city worth Rp 278 trillion Lippo Group president Theo Sambuaga (left), Lippo Group CEO James Riady (center) and senior adviser Agum Gumelar (right) pose for a photograph after announcing the group’s plan to build a city for Rp 278 trillion to the east of Jakarta. The project is the group’s biggest investment in 67 years. (JP/Winny Tang)

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ippo Group has announced a plan to invest Rp 278 trillion (US$21 billion) to build a mixed-use urban center to the east of Jakarta called “Meikarta.”

The company claimed the area, which lies between Jakarta and Bandung, would become the “Shenzhen of Indonesia.”

Meikarta will be surrounded by industrial areas, such as Jababeka and MM2100.

“This corridor has become the industrial center of Indonesia. More than 1 million cars, 10 million motorcycles and millions of refrigerators and air conditioners are produced there every year,” Lippo Group CEO James Riady told a press conference on Thursday.

The investment will come from Lippo group’s internal capital, loans and fund from partnerships with various companies.

“The funding will not be one-dimensional from one company. For instance, [there will be cooperation with] Mitsui for one part, with Toyota for another part,” he said.

International and national companies like Astra, Honda, Toyota, Suzuki, Hankook and Samsung had shown interest in occupying the new corridor, he added.

The first stage of construction is expected to be completed within three years and involve local contractors, such as state-owned construction firm Wijaya Karya (Wika), Total Bangun Persada and PP. (bbn).

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