French housing developer optimistic on local potential

The Jakarta Post, Jakarta

Premier Indonesia, a subsidiary of the French-based Les Nouveaux Constructeurs, has completed the development of a block of homes at its Central Park luxury housing estate in Cibubur.

The housing complex is located in the Kota Wisata housing complex.

Ronan Arzel, former general manager of Premier Indonesia, said in a press conference on Thursday that the firm had completed the construction of 20 housing units, which it would hand over to buyers on Sunday.

The company invested about Rp 100 billion (US$11.7 million) in the project, which will have a total of 92 units.

Built on a 4.6-hectare lot, the Central Park project is expected to be entirely completed by early 2005. Houses are being sold for between Rp 1.2 billion and Rp 2 billion.

Most buyers come from Bandung and Bogor both in West Java, Bandar Lampung in Lampung and Solo in Central Java, he said.

Arzel said Premier was still offering houses in the complex for interested buyers.

The firm is one of the few foreign investors engaged in the country's housing sector, which is dominated by local investors.

Arzel said he was optimistic that the houses they planned to build in Central Park would sell well amid the decreasing housing loan rates. The declining bank saving rates will also encourage people to withdraw their savings from banks and invest in other sectors, including property.

He said Premier believed there were many business opportunities in other parts of country, but it had thus far decided to focus on greater Jakarta.