Jababeka to invest $683m for estates
JAKARTA (JP): PT Kawasan Industri Jababeka Tbk, a publicly listed property developer, plans to invest US$683 million to open two new industrial estates in West Java.
Jababeka chief commissioner Sudwikatmono said yesterday his company will also acquire stakes in PT Cikarang Listrindo, PT Batavia City Realty and PT Batavia Perkasa.
"If the plans are approved, Jababeka will have invested a total of Rp 4 trillion (US$1.7 billion) since its establishment in 1989," Sudwikatmono said in a statement.
As a publicly listed firm, Jababeka must secure approvals from its independent shareholders and also the Capital Market Supervisory Agency to execute the plans.
Sudwikatmono said one industrial estate will be located in Cikarang, adjacent to the existing industrial estate and the other in Cilegon. Both locations are in West Java.
Jababeka president Ismail Sofyan said the company will cooperate with Singapore-based Technology Parks Pte. Ltd., a subsidiary of Jurong Town Corp., to develop a new 240-hectare industrial estate in Cikarang with an investment of $91 million.
Jababeka signed the memorandum of understanding for possible establishment of a joint venture with Technology Parks last month, and will sign a follow-up joint-venture agreement next month.
Sofyan explained that unlike Jababeka's existing industrial estate, the planned estate in Cikarang will host high-tech industrial plants.
Jababeka's current industrial estate in Cikarang hosts some 580 industrial firms, including PT Unilever Indonesia, PT Mattel Indonesia, PT United Tractor and PT Samsung Electronic.
Meanwhile, Jababeka's planned industrial estate in Cilegon will be built on an 800-hectare plot on the seashore, close to the Bojonegara seaport. It will cost $592 million in new investment, Sofyan said.
The planned Cilegon estate will attract as its tenants heavy industrial and chemical plants as well as factories producing supporting materials.
In addition to opening industrial estates, Jababeka also plans to acquire a 67.5 percent stake worth $12.36 in PT Batavia City Realty, a company which owns the 32-floor Menara Batavia office building on Jl. K.H. Mas Mansyur in Central Jakarta, which has a total office space of 47,000 square meters. Jababeka will use some of the office space for its headquarters.
The company also plans to purchase a 67.5 percent stake worth $7.36 million in PT Batavia Perkasa, a company which owns a 2.25 hectare plot on Jl. K.H. Mas Mansyur, adjacent to Menara Batavia. Batavia Perkasa will develop a number of high-rise buildings on the plot for a hotel, apartments and shopping and entertainment centers, with a total investment of $170 million.
Jababeka will also acquire a 21 percent stake worth $42 million in PT Cikarang Listrindo, a company which owns and operates a power generation station in Cikarang to supply electricity to local industrial firms.
Cikarang Listrindo's power station has a total capacity of 228 megawatts, which is currently being expanded to 352 megawatts. (rid)