Janeman Latul
\nEmaar: Just the Start?<\/p>\n
The announcement that Dubai\u2019s state-owned Emaar Properties PJSC has pulled the plug on a $600 million property project on Lombok Island may be a signal of worse to come, business players and analysts said on Sunday .<\/p>\n
It has, however, also emerged that Emaar is facing serious financial difficulties at home and is hurriedly canceling projects around the globe.<\/p>\n
Speaking on Sunday about Emaar\u2019s allegations of government ineptitude, Purbaya Yudi Sadewa of the state-owned Danareksa Research Institute said: \u201cIt\u2019s a signal for foreign investors to be very cautious about investing here. It will make people more reluctant to press ahead with their projects, and maybe even convince some to pull out.\u201d<\/p>\n
Emaar canceled the joint venture with state-owned Bali Tourism Development Corp. after it claimed the government appeared incapable of fulfilling a number of preconditions for the project, particularly regarding land acquisition.<\/p>\n
\u2018It\u2019s a signal for foreign investors to be cautious about investing here\u2019<\/p>\n
Purbaya Yudi Sadewa,
\nDanareksa Research Institute<\/p>\n
Emaar also hinted that too many officials were looking for kickbacks and bribes.<\/p>\n
Meanwhile, it turns out that Emaar is facing serious financial difficulties amid the global financial crisis and is bailing out of projects as quickly as it can.<\/p>\n
The company suffered a 2008 fourth-quarter loss of $481.9 million, and its stock has fallen from a high of 11.90 United Arab Emirates dirhams ($3.24) in April last year to just 2.05 dirhams. It was reported from Dubai on Thursday that the company had canceled its annual general meeting without giving a reason, and investors have been petitioning the company to cancel further projects given market uncertainty. To make matters worse, the company also recently sought bankruptcy protection for its US unit.<\/p>\n
The Lombok project envisioned a development covering 1,200 hectares on the resort island.<\/p>\n
Khaled M. Al-Aboodi of the Islamic Corporation for the Development of the Private Sector, an affiliate of the Islamic Development Bank Group, had previously warned about the importance of secure land titles to Middle Eastern investors.<\/p>\n
\u201cFor investors who want to invest in property, land ownership for foreigners is important,\u201d he said. \u201cInvestors are only interested in becoming involved in projects which they can present to international buyers. Currently, If I want to do a huge development, all I can count on is demand from buyers on the Indonesian side.\u201d<\/p>\n
Dian Putra of BCI Asia, a multinational consulting firm, said he was very disappointed with the cancellation, especially given the allegations of corruption.<\/p>\n
\u201cCorruption in international megaprojects is commonplace in our country, especially on the part of local government officials,\u201d he said. \u201cMiddle Eastern investors will have a problem with that.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/emaar-withdraws-from-us600-million-lombok-project-1237184726", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }