Shopping center to be expanded

JAKARTA (JP): Plaza Indonesia Realty plans to spend US$225 million renovating and expanding Plaza Indonesia's shopping center and building new apartment and office buildings on an adjacent site, according to company's project general manager.

Willy Sidharta said that phase one, the renovation and expansion, would add another 100,000 square meters of floor space. Phase one is expected to cost about Rp 10 billion.

The second phase includes construction of a 48-storey apartment building and a 50-storey office building.

Willy said the project was scheduled to start in March and be completed in the year 2000.

"Management is still selecting contractors which are competing in a bid for this project," he was quoted by Antara as saying Thursday.

He said Plaza Indonesia Realty was likely to use its old Japanese contractor, but that it would have to work with an Indonesian partner.

Willy said it was now appropriate to renovate Plaza Indonesia because it was completed five years ago.

"We can see from the experiences of other high-class shopping malls that a lack of development and innovations to attract customers can quickly result in bankruptcy," he said. (pwn)