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BSD bets on housing demand from new capital city
Developer BSD is getting in ahead of the competition with two urban real estate projects in East Kalimantan, banking on the revived plan to relocate the capital there to push up demand for residential property.
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Property developer PT Bumi Serpong Damai (BSD), which built planned community BSD City in Serpong, South Tangerang, is eyeing two new projects in East Kalimantan, banking on the goverment's revived plan to relocate the nation's capital to the province. (Kontan/Muradi)
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ublicly listed property developer PT Bumi Serpong Damai (BSD) plans to develop residential areas along the eastern coast of East Kalimantan to capitalize on the relocation of the nation’s capital to that province.
The developer is a subsidiary of Indonesia’s largest property player, Sinarmas Land, and trades under the ticker code BSDE on the Indonesia Stock Exchange (IDX).
In a shareholders meeting on Tuesday, BSD said it owned more than 500 hectares of land near the site of the new capital city, split into 270 ha in Balikpapan and 245 ha in provincial capital Samarinda. It planned to develop most of the land into residential areas, with the rest to be developed according to the government’s needs for the new capital.
“We are currently preparing the [development] plan as well. Maybe in one to two years, we can start launching the projects,” BSD president director Franciscus Xaverius Ridwan Darmali said during a live public expose held by the IDX on Tuesday.
The new capital city is expected to accommodate 1.5 million residents, mostly state officials, on a sprawling 256,000 ha site that spans the East Kalimantan regencies of North Penajam Paser and Kutai Kartanegara.
Developing the new capital city is to cost an estimated Rp 466 trillion (US$32.7 billion), 19 percent to be drawn from the state budget and the rest to come from private investments.
President Joko Widodo announced in August plans to resume developing the new capital city despite the challenges of the pandemic, hoping to relocate the country’s administrative hub from Jakarta to East Kalimantan before his second term ends in 2024.
