Jababeka to build estate in Cilegon

JAKARTA (JP): PT Kawasan Industri Jababeka Tbk., a publicly listed industrial estate and housing developer, plans to build an industrial estate in Cilegon, West Java.

Jababeka's president, Ismail Sofyan, said yesterday his company had obtained a license to develop the estate on 1,300 hectares in Cilegon.

"We got the permit to develop 800 hectares initially, but we have an option to have another 500 hectares," Ismail said.

The company will spend about US$600 million on the project.

He said the project would start soon with full support from the local government.

A new seaport at nearby Bojonegoro would speed up the development of the estate, he said.

"The planned industrial estate will be better than existing ones," he said.

The strategic location of the planned estate gave it great potential as an industrial area, he said.

"The southern side of the area is situated right by the Jakarta-Merak tollway, the west part borders with the road that leads to the planned Bojonegara port and the north part is on the coast of Java Sea," he said.

With better infrastructure in the estate, companies' operations would become more efficient, he said.

He said the company expected to expand the area to 2,000 hectares.

Some foreign investors have shown interests in making machinery, steel, electronics and chemicals at the estate, he said.

"Some have asked for an average of 100 hectares," he said.

Sofyan said Jababeka was drafting the estate and studying any environmental effects.

"We are now planning the design for the water treatment plant, the waste management plant and shore reclamation," he said.

Group Jababeka manages a 1,573-hectare industrial estate and a 1,400-home residential area in Cikarang, West Java. (02)