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usiness complex developer PT Sanggraha Daksamitra, the developer and manager of Soewarna Integrated Business Park at Soekarno-Hatta International Airport in Tangerang, Banten, is waiting for the airport operator’s approval for its contract extension in order to go ahead with its plan to expand its warehousing facilities.

Senior general manager Suhandi said on Thursday, however, that the firm could not implement the plan until it had gained assurance from the airport’s state-owned operator PT Angkasa Pura II (AP II) regarding the extension of its land lease contract.

“Our current 20-year [land lease] contract with Angkasa Pura II will end in either late 2018 or early 2019,” he told reporters at a media gathering at Plaza Indonesia in Central Jakarta, adding that the company was currently in talks with AP II to extend the contract.

Sanggraha currently operates a 102-hectare plot of land within Soekarno-Hatta, including a 62-hectare golf course and a 30-hectare business park, which comprises low-rise office buildings and a warehousing complex.

Suhandi said that the size of the warehouses in the complex ranged from 400-square-meter standard modules to 6,000-square-meter custom-built warehouses. “10 hectares [of the 30-hectare business park] is already developed, housing more than 80 tenants, most of which are multi-national companies,” he said.

The occupancy rate of the developed section of the business park had reached 98 percent, he said, adding that any future plan to develop the area would need to involve the 20-hectare idle land.

“Many of our existing tenants have expressed their eagerness to expand their plots, while many other companies have stated their wish to lease an office or a warehouse in the park,” he said. “However, many of them are still undecided due to the lack of assurance from AP II regarding our land lease contract extension.” He said even though there was no specific deadline for a contract extension, he was hopeful of striking a deal with AP II as soon as possible.

“Hopefully we can strike a deal this year, so that we can start implementing our development plan next year,” he said.

He said that the company planned to develop an area of between 5 and 10 hectares within the next three years, provided everything went as planned.

“We plan to develop the entire 20-hectare land in five years,” he said, adding that he could not disclose any investment-related numbers right now.

AP II president director Tri S. Sunoko said on Friday that there had not been any talks with Sanggraha concerning the extension of the latter’s land lease contract.

“The contract will end in 2018, which is still far away. We haven’t made any decision whether to extend the contract or not. It is still too early for that,” he told The Jakarta Post over the telephone, adding that the company was still studying the matter thoroughly right now.

Regarding recent reports of AP II’s plan to terminate the contract with Sanggraha in 2018 and utilize the business park’s land as a site for a future passenger terminal, he said, “We haven’t reached a final decision on the matter.”

He said that AP II was still waiting for a decision by the directorate general of air transportation at the Transportation Ministry on the matter.(mim)