Sales of industrial estates remain flat, analyst says
JAKARTA (JP): Sales of industrial estates in Bekasi, Karawang and Purwakarta in West Java remained flat in the first quarter of this year due to persistent uncertainty over the country's political and financial situation, a report says.
Property consultant PT First Pacific Davies Indonesia (FPDI) said the areas' industrial estates had few tenants in the January to March period.
The company, which recently conducted a survey on the industrial estates in the three locations, said estate sales had been much lower than in the first semester of last year.
"The four biggest industrial estates, with a combined area of 3,500 hectares, sold 110 hectares in the second semester of 1997, which is equivalent to 50 percent of the total sales for 1996," the company said.
The company said land prices at the industrial estates in the three cities remained stable at US$76 per square meter before taxes.
According to the property consultant, the sluggish sales were due to the fact that many prospective tenants were taking a "wait and see" attitude rather than signing contracts.
The company said these investors were concerned over the country's efforts to improve the ailing economy.
"Most investors questioned whether Indonesia would implement the International Monetary Fund's (IMF) economic reform package or if the country would follow other measures to rescue its ailing economy," the report said of the prospective tenants asked.
The government and the IMF are currently working to amend the country's economic reform programs to heal the economy. Conclusion of the talks is expected to be announced later this week or early next week.
The property consultant firm also said the crisis affecting the region was also to blame for the stagnant industrial estate sales in the greater Jakarta area.
The company said 73 percent of the estates' established tenants were from Asia, while 18 percent were domestic, 1 percent were Australian, 3 percent were American and 5 percent were European. (aly)