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Jababeka to spend Rp 350 billion for Kendal expansion
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A motorcyclist passes the welcome sign of Jababeka's township located in Cikarang, 35 kilometers east of Jakarta. (Kontan/Daniel Prabowo)
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ublicly listed property developer Jababeka Tbk is allocating Rp 350 billion (US$25.8 million) of its capital to acquire land for the business expansion of the Kendal Industrial Estate in Central Java.
Jababeka corporate secretary Muljadi Sugandi said Jababeka had already acquired 450 hectares of land in 2015, and currently is in the process of clearing another 150 ha needed for the industrial park.
“With this capital expenditure, the company will be able to acquire more land this year,” he told thejakartapost.com after a shareholders meeting in Jakarta on Friday, adding that the firm expected to acquire a further 860 ha of land this year out of the 2,700 ha it targeted.
Kendal Industrial Estate, which will be launched soon, is touted to be a low-cost industrial zone with good connectivity, as well as competitive labor costs. The project is 51 percent owned by Jababeka and the remaining 49 percent is controlled by the Singapore-based Sembawang Corporation.
It was meant to be an alternative area to Jakarta as Tanjung Priok port was already overloaded, Mulyadi said. (sha/ags)
