Dharmala Group ties up with Malaysian firms

JAKARTA (JP): Businessmen took advantage of the APEC meetings, that culminated with a conference in Bogor on Tuesday, by signing various deals in the presence of government leaders.

Two companies of the Dharmala Group, for instance, signed here yesterday a memoranda of understanding with two Malaysian firms to set up join ventures.

The signings were witnessed by Malaysian Prime Minister Mahathir Mohamad.

PT Dharmala Intiland, a listed-property developer and Damansara Realty Bhd., a holding construction company of Malaysia, agreed to establish a new firm operating in property development.

Intiland's president Hendro S. Gondokusumo and Damansara's executive Jaafar Bahar told a press conference here yesterday that both companies will jointly explore, evaluate and develop properties and related projects both in Indonesia and Malaysia.

"We see Jakarta and Surabaya in Indonesia as well as Malaysia as potential areas for both apartments and office buildings," Hendro said.

"The market for apartment housing in Indonesia, for instance, will keep expanding, especially because the government plans to allow foreign ownership," Hendro said.

Another Dharmala subsidiary, PT Dharmindo Adhiduta, which has also been listed on domestic stock exchanges, and Malaysian diversified group, CP South East Asia (SEA) Sdn. Bhd., have agreed to set up a US$10 million building material manufacturing facility in Bekasi, east of Jakarta.

CP (SEA)'s executive chairman Tan Chew Piau said that the signing of the join venture agreement is scheduled to take place early next year.

"This will be my first join venture with an Indonesian partner," he said, adding that CP (SEA) currently has eight subsidiaries in Malaysia.

Dharmindo's president Boedijanto said that the facility will have the capacity to produce 200-square-meters of marble and granite per month.(icn)