State-owned retailer PT Sarinah Persero plans to expand by developing apartments, hotels and office buildings on its sites in Jakarta, Bandung and Bali.
"We will maintain our focus on the retail business, but we will optimize the use of our land resources by constructing hotel and office complexes," Sarinah president director Ketut Arnaya said at a ceremony Thursday in Jakarta marking Sarinah's 44th anniversary.
Ketut said that Sarinah would transform its 2.4-hectare site on Jl. M.H. Thamrin, Central Jakarta, into the Sarinah Square, consisting of a hotel, apartments, multistory parking garage and an office complex.
Due to its strategic location in the heart of Jakarta, Sarinah Square, to be built at a total cost of Rp 200 billion (about US$21.6 million) would become a new center for business and trade, he was quoted by Antara as saying.
The construction of the Sarinah Square development would commence in 2007, starting with the multistory parking garage, to be followed by the apartment complex, and then by the hotel and the expansion of the existing shopping area, he said.
State enterprises consultant PT Yodya Karya Persero will design the overall development, which still needs the approval of the state minister for state enterprises, he said.
In addition, Ketut said that Sarinah would use its 700 square-meter site on Jl. Braga, Bandung, for the development of a Regent Sari Pacific Hotel at a cost of around Rp 132 billion. The hotel would be managed by the Accor Hotel group.
Ketut said the firm's Bali site in Kuta would also be redeveloped along similar lines.
Even after the developments had been completed, Sarinah would continue to concentrate on the retail trade and would "still focus on the middle to upper-income brackets by providing segmented products that are unavailable in other shopping centers," Ketut said, referring to Sarinah's position as Indonesia's largest retailer of Indonesian handicrafts and batiks.(10)
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