Indonesia’s Agung Podomoro plans to build housing project worth $270 million in Nusantara, ET RealEstate
JAKARTA: One of Indonesia‘s largest real estate companies, Agung Podomoro Land, plans to build apartment buildings worth more than $270 million in the new capital of Nusantara, the city authority told Reuters.
President Joko Widodo has sought to reassure investors and bureaucrats that the $32-billion new capital city will move forward, after two officials leading the project resigned this month, prompting fresh doubts about its future.
The housing deal is one of the first by a private company in the city being built amid the jungles of Borneo, through a public-private partnership scheme.
Agung Podomoro will partner with the city authority’s business unit, Bina Karya, to build 15 apartment towers worth up to 4.5 trillion rupiah ($275 million), the unit’s president director, Boyke Soebroto, told Reuters.
Agung Podomoro did not comment on the details provided by Bina Karya, but company spokesperson Justini Omas said partnership talks were underway.
Last year the city authority last year said it was in talks with private developers, including some from China and South Korea, for residential projects worth $2.7 billion in Nusantara, but those did not pan out.
Agung Podomoro’s porfolio includes residential and commercial properties, among them superblocks in the centre of Jakarta, the current capital.
Developer Pakuwon Jati will also build a superblock, which groups a mall, a condominium and hotels, in Nusantara, in a project worth 5 trillion rupiah.
Widodo has said he wanted to declare Nusantara as the new capital this year, expecting thousands of civil servants to move there in September from overcrowded and polluted Jakarta.
