Kota Wisata going strong despite economic gloom

JAKARTA (JP): While most property developments appear to be at a standstill, the owners of Kota Wisata -- a mega housing complex in Cibubur, East Jakarta -- have claimed that business is booming.

Fumio Okita, vice president of the 1,000-hectare project, said yesterday that construction on the first stage of the project started in March 1996 and had been completed now.

All 2,000 houses in the first stage, which range in price from Rp 80 million (US$21,920) to Rp 400 million, have been sold, he said after attending Kota Wisata's first anniversary celebration.

"Until today, we have earned a total of Rp 270 billion from sales and that's the reason why we are confident about the future of the housing industry in Indonesia despite the currency crisis, which is publicly said to have affected the property market and projections," Okita said.

Kota Wisata is being jointly developed by PT Duta Pertiwi -- part of the Sinar Mas Group -- Marubeni Corporation of Japan, LG International Corporation of South Korea, and the Land & Houses Public Co. of Thailand.

Duta Pertiwi has a 29 percent stake in the project, Marubeni has 26 percent, LG has 25 percent and the remaining 20 percent is owned by Land & Houses.

The first stage occupies 144 hectares of the plot and cost Rp 5.5 trillion to build.

Okita said work on the remaining 856 hectares would continue as planned.

"Our investment is in U.S. dollars, so we're not worried at all about the local currency rate and particularly because sales are proceeding with satisfying results," he said. "Why should we panic and retreat from the housing industry?"

Okita refused to disclose the investment required for the next stages but said work would begin soon.

Located about 35 kilometers from here, Kota Wisata is being developed into residential and commercial areas and parks modeled on some of the world's big cities, such as Vienna, Amsterdam, Florence, Paris, California, Madrid, Marseille and Kyoto.

The size of residential houses in the complex range from 45 square meters to 244 square meters.

Okita said the project targets Indonesia's growing middle class.

Marubeni's president, Iwao Toriumi, who also attended yesterday's ceremony, said he remained optimism about the project.

"I know that this project is aimed at middle-class consumers, and as far as I'm concerned, the Jakartan middle class is growing and for them housing is really central to their way of life." Toriumi said. (04)