Indonesian developer Bakrieland to partner Chinese firm on US$350 million Jakarta complex
- The development would mark China Construction First Group’s first foray into Southeast Asia’s largest economy
- Analysts say Indonesia’s growing economy, combined with urbanisation and a young population, offer potential for property developers
Bakrieland’s president, director and CEO Ambono Janurianto did not reveal the specific size or location of the project, but said the company had set aside 10 hectares of land – equivalent to around 10 football fields – for the complex, which will comprise flats, shopping malls, a hotel and a convention hall.
Ambono said both sides were working out the specifics of the deal, and whether it would be a joint venture or if Bakrieland would be the developer and hire CCFG as a contractor.
“If it is a joint venture, the equity participation of Bakrieland would be 30 per cent. But then the consequence of that scheme is that the funds, the engineering, procurement, construction and commissioning and equipment have to be provided by China,” Ambono said, adding that the Chinese partners were “strong in the financing”.
