JIEP expects high occupancy rate this year

JIEP expects high occupancy rate this year

JAKARTA (JP): State owned PT Jakarta Industrial Estate
Pulogadung (JIEP) expects a stable occupancy rate this year
despite negative reports on the country's investment climate.

JIEP president Otje Soetoto said here on Wednesday that he was
optimistic that the unfavorable reports regarding Indonesian
investment would not really hurt investors confidence.

He cited that the company's occupancy rate, which reached 95
percent at present, would stay high in the coming months,
although some analysts feared the uncertainty in the investment
climate would scare off foreign investors.

"Our high occupancy rate shows that confidence is high among
local and foreign investors in Pulogadung, however," said Otje
during the company's business meeting here on Wednesday.

JIEP, which provides industrial land sites, standard factory
buildings and warehouses to local and foreign investors in its
415-hectare industrial estate, in Pulogadung, East Jakarta, has
420 occupants.

Most of the companies are involved in metal-based, printing,
and pharmaceuticals industries, Otje said, adding that 30 percent
of the existing companies were operated by foreign investors.

He acknowledged that some of the company's occupants had quit
due to financial difficulties or because their leasing contracts
had expired.

Such a withdrawal is common in the company because there are
always newcomers, he said.

He stated that JIEP would also increase security in the area,
giving investors more assurance that they were safe to do
business in Pulogadung.

Otje added that the business activities at Pulogadung were not
affected by recent riots and labor protests since the location
was far enough away from the turmoil.

Otje said that the company planned to build an airport and
repair the main road, buildings and environment in the industrial
area to make life more convenient for potential investors.(07)