$2.2b in property projects could be postponed in 1998<\/p>\n
JAKARTA (JP): Property projects worth Rp 11.48 trillion
\n(US$2.2 billion) are likely to be postponed next year due to the
\ndragging monetary crisis, property publishing firm Burword
\nPublishing Indonesia has said.<\/p>\n
Burwood predicted last week that some Rp 18.97 trillion
\nin property projects could probably survive the current crisis
\nand continue next year.<\/p>\n
\"If economic recovery comes earlier next year, property
\nprojects valued at Rp 30.45 trillion could possibly continue
\ntheir construction,\" Burwood said.<\/p>\n
Burwood said property projects under construction and to be
\ncompleted next year were valued at Rp 4.53 trillion.<\/p>\n
New projects whose construction was scheduled to commence next
\nyear were worth Rp 14.44 trillion. These projects would likely be
\nsuspended if the economic crisis continued or even worsened next
\nyear, the firm said.<\/p>\n
Based on its research of 439 property projects in October,
\nBurwood said 91 large projects, with an investment of over Rp 120
\nbillion, were delayed.<\/p>\n
The remaining 348 projects, mainly small- and medium-scale
\nprojects worth between Rp 30 billion and Rp 50 billion, were
\nlikely to continue next year.<\/p>\n
Of those surviving projects, 25.6 percent were residential
\nprojects, 20.6 percent office buildings, 16 percent retail, 11
\npercent hotels and 26 percent others, including resorts and
\nhospitals.<\/p>\n
Burwood identified six new large commercial projects with a
\ntotal investment of Rp 650 billion, which would likely continue
\nnext year.<\/p>\n
They were Taman Niaga Golf in Cengkareng, West Jakarta; Kota
\nBaru Parahyangan in Bandung; Surabaya Exhibition Center in
\nSurabaya, East Java; Permata Kebayoran Apartment, West Jakarta;
\nRungkut Mall in Surabaya; and Puri Delta Mas on Jl. Bandengan,
\nJakarta.<\/p>\n
Of 690 building projects researched by Burwood so far, 66
\npercent had not began construction, rescheduled or even canceled
\ntheir projects, 34 percent were in the middle of construction and
\nonly 9 percent had been completed.<\/p>\n
\"Many project investors have to rack their brains about how to
\nsurvive the current monetary crisis. Estimates on the value of
\nprojects have been wrong due to an escalation in prices.
\nConsequently, many cannot stick to their timetables in completing
\ntheir projects,\" Burwood said.<\/p>\n
Indonesia has been gripped by a severe monetary crisis since
\nearly July due to the sharp fall of the rupiah against the U.S.
\ndollar. The rupiah has lost more than 50 percent of its value
\nagainst the dollar since then. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/22b-in-property-projects-could-be-postponed-in-1998-1447893297",
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"sponsor": "Okusi Associates",
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