RI-Malaysia joint venture invests in Medan

RI-Malaysia joint venture invests in Medan

JAKARTA (JP): Malaysia's Tiara Etika Development Sdn. Bhd. has
signed a memorandum of understanding with PT Kawasan Industri
Medan, a company owned by the North Sumatra administration, for a
joint venture to build five projects.

The memorandum of understanding was signed Friday in Medan by
Tiara Etika Development's executive chairman, Dato Zainal Abidin
and PT Kawasan Industri Medan's president director, Popo
Herwaman, Kompas daily reported.

Popo said the joint venture, PT Kimtechno, will be 20 percent
owned PT Kawasan Industri Medan and 80 percent by the Malaysian
firm.

The joint venture will invest 700 million Malaysian ringgits
to build the five projects in Medan industrial estates, which are
owned by PT Kawasan Industri Medan.

The five projects include an office building, a hotel,
housing, shopping center and a sports and recreational center.

Zainal said the office building project would be the first to
be developed, starting next year.

Both Popo and Zainal are optimistic about their joint
projects, in view of the rapid progress of the Medan industrial
estates.

Popo said the 190 hectares of industrial lots in the estates
had been bought by investors, and his company had acquired an
additional 314 hectares of land nearby as an extension of the
estates.

He said the joint-venture company would develop its five
projects in the extension area.

Popo added that PT Kawasan Industri Medan was developing the
estates into a one-stop service center for industrial
investors. (jsk)