Demand for industrial estates to drop 10 percent<\/p>\n
JAKARTA (JP): Industrial park developer PT Suryacipta Swadaya,
\na subsidiary of publicly listed PT Surya Semesta Internusa,
\nexpects a 10 percent drop in demand due to the currency crisis.<\/p>\n
The company's president Basroni Rizal said that amid the
\nmonetary crisis, some investors had delayed their plans to open
\nfactories in Indonesia.<\/p>\n
\"But a lot more are still continuing their plans,\" he said.<\/p>\n
He said that his company, which is currently developing a
\n1,400-hectare industrial estate in Karawang, West Java, was
\noptimistic of reaching a target of selling at least 70 hectares
\nof its estate every year despite the estimated lower demand.<\/p>\n
\"The demand of industrial land in Indonesia reaches at least
\n1,000 hectares per year. We have set a target to grab at least 7
\npercent of it, or 70 hectares per year,\" he said.<\/p>\n
He said that his company was still negotiating with 20 foreign
\ncompanies to enter his industrial estate.<\/p>\n
Suryacipta secured yesterday a US$30 million loan from the
\nLondon-based Commonwealth Development Corporation (CDC).<\/p>\n
The six-year loan will be used to finance the construction of
\nthe second phase of its industrial estate in Karawang, called
\nKota Industri Suryacipta (Suryacipta Industrial City).<\/p>\n
Charles S Jonan, the company's director, said the construction
\nof the first phase of the estate was 99 percent complete and it
\nwas scheduled to be completed by the end of the year.<\/p>\n
Charles said that about 80 percent of the first 500-hectare
\nestate, which has opened since 1995, had been sold.<\/p>\n
\"We sold around 35 hectares in 1995 and 99 hectares in 1996.
\nThis year, we have sold 75 hectares as of September,\" he said.<\/p>\n
He said foreign investors were still confident in operating in
\nIndonesia despite the current monetary crisis, which had slashed
\nthe value of the Indonesian rupiah against the U.S. dollar by
\nabout 35 percent since it first hit the country in early July.<\/p>\n
Charles said that the crisis, which had prompted the
\ngovernment to introduce a credit crunch policy and massive
\ncutbacks in the state budget and state-related projects, would
\nonly be temporary.<\/p>\n
\"Most of the investment is long-term, which was planned a long
\ntime ago. So the investors choose to go ahead with their plans,\"
\nhe said.<\/p>\n
The CDC, established by the British government in 1948 to
\nfinance long-term projects, has operated in Indonesia since 1971
\nand has so far provided about $300 million in loans to Indonesian
\ncompanies.<\/p>\n
CDC's country manager in Indonesia Mark Edwards said that the
\nindustrial estate in Indonesia was very promising and has grown
\nrapidly with the government's full support.<\/p>\n
\"Our involvement confirms our confidence in the project and in
\nthe long-term investment environment notwithstanding the present
\neconomic problems,\" he said.<\/p>\n
Suryacipta Industrial City is an integrated industrial estate,
\nwhich comprises industrial park development, ready-to-use plants,
\na commercial complex, clean water and wastewater processing
\ncenters, telecommunications and electricity facilities,
\ndormitories and low-cost housing.<\/p>\n
Sixteen foreign and local companies have established their
\nfactories on the estate. These include ceramic maker PT Keramika
\nIndonesia Asosiasi, battery maker PT GS Battery Inc and tire
\nproducer PT Bridgestone Tire Indonesia. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/demand-for-industrial-estates-to-drop-10-percent-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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