2010 11 BCI Asia Construction Outlook 2011

Construction Outlook 2011

A Di C t Di t f BCI A iAgus Dinar, Country Director of BCI Asia

Jakarta, 24 November 2010

222 Copyright 2010 BCI Asia Construction Information

Perkembangan Properti Komersial Triwulan III 2010Bank Indonesia Survey


Survey Harga Properti Residensial Triwulan III 2010

Bank Indonesia Survey

Survey Harga Properti Residensial Triwulan III 2010


National Overview IndonesiaNational Overview Indonesia

The Indonesia construction sector is look very promising, is given a boost by the attractive purchasing environment low interest rate undervaluedby the attractive purchasing environment, low interest rate, undervalued property prices compared with the region and Indonesia has shows a solid potential as a promising emerging property market for foreign investors.



In government projects perspective, Indonesia has a market-based economy in which the government plays a significant role. There are 139 state-owned enterprises, and the government administers prices on several basic goods.

The government budget allocation to infrastructure spending — to build ports, airports toll roads and bridges and other vital infrastructure have positive impact forairports, toll roads and bridges and other vital infrastructure, have positive impact for construction sector.



Construction starts value for all project categories in Indonesia(V l i illi i h)(Value in millions rupiah)



Construction starts value for all project categories in Indonesia(Value in millions rupiah)


Residential Projects

The development of large-scale housing areas and p g gnew towns surrounding Jakarta due to the ever-increasing demand for new houses for people living and/or working in the city.



CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has expanded its presence into Bali, Indonesia, by clinching a contract to manage a 174-unit serviced residence in K ta To be named Citadines Bali K ta the ser icedresidence in Kuta. To be named Citadines Bali Kuta, the serviced residence will open in 2012.

Besides Citadines Bali Kuta, Ascott will open its first Citadines property in Indonesia, Citadines Jakarta Quartier, later this year; Citadines Jakarta Rasuna in 2011 and Ascott Kuningan Jakarta in 2012. Currently, the company has five operating serviced residences in Indonesia, namely Ascott Jakarta, Somerset Berlian, Somerset Grand Citra, and Country Woods in Jakarta as well as Somerset Surabaya Hotel & Serviced Residence.Surabaya Hotel & Serviced Residence.



PT Agung Podomoro Group, one of the country’s largest and respected property developer is planning to raise freshand respected property developer, is planning to raise fresh cash from selling shares via initial public offering at the end of 2010. From the IPO will be used by Agung Podomoro to complete the constructions of apartments, hotels and offices in Central Park project and to acquire and develop

Th d d l S i b ildi

offices in Central Park project and to acquire and develop new projects, i.e. Green Lake Sunter and other projects which will be carried out in the next two years.

The renowned developer Summarecon is building a township in Bekasi, Jawa Barat called Summarecon Bekasi. Of the 250 hectare of land available, 35 percent will be allocated as commercial area.

The developer will build 16 clusters whereby each consists of 6 to 7 hectares with 200 to 300 houses. In addition, there will also be apartments, shopping mall: Summarecon Mall Bekasi trade center office park shopping houses modernBekasi, trade center, office park, shopping houses, modern fresh market, as well as an artificial lake which serves as retention basin.


Retail Projects

Indonesia, with its high population and growing middle class, is among the most attractive retail markets in the world. PT Matahari Putra Prima Tbk hypermarket chain has planned toPrima Tbk, hypermarket chain, has planned to open up 13 new Hypermart outlets and three Foodmart outlets consisting of 11 Hypermart outlets in Java, one outlet in Sumatra, one Hypermart outlet in Ambon, and Foodmart outlets in Jakarta and Bali.


Retail Projects

Another hypermarket chain Lotte, which bought Makro Indonesia in 2008, targets to build 30 new hypermarket class outlets by the end of 2015 with a total investment value of US$860 million. At the minimarket level until end of 2010 minimarket chain Indomart is targeting to open 750 new outletsminimarket level, until end of 2010 minimarket chain, Indomart is targeting to open 750 new outlets while its main competitor Alfamart plans to open 600 new outlets.

The modern market is growing and will continue to expand due the increase in the size of the country's middle class as well as changes in lifestyles But at the same time the modern marketcountry s middle class as well as changes in lifestyles. But at the same time, the modern market would not easily take over the domination of the traditional markets, because several surveys show the modern markets still could not compete with the traditional ones in terms of providing fresh food.


Office Projects

In general, based on projects location, developers are moving southward to construct new office buildings in the capital city in a search for cheaper land prices and a location image. It is surrounded by established prime residential and commercial developmentsresidential and commercial developments.


Office Projects

Adhi Karya secured a new contract ofAdhi Karya secured a new contract of Mangkuluhur Office Tower development owned by PT Wisma Purnayudha Putra sited at Jalan Gatot Subroto Kav.1, Jakarta.

The project's value is worth of Rp455.5bn and will be completed in 21 months. The scope of work is including structure architecture and MEP Suchincluding structure, architecture, and MEP. Such Design and Build project will have of 3 basements floor and 30 offices floor.


Office Projects

An upcoming iconic office building on re-sedign stage, named Grand Sahid Plaza Office, Sahid Group have plan to build two 59-storey office towers contain four Office, Sahid Group have plan to build two 59 storey office towers contain four levels of basement, with a floor space of about 132,000 square meters.

An embassy project, New Australian embassy complex at Patra Kuningan is expected to be construct in first quarter 2011, to include: Chancery Building with a p q , y gfloor space of 19,000 square metres, Ambassadors residence, Immigration & Passports offices, townhouses and other supporting facilities. In line with emerging financial and banking sector, the national bank aggressive to open their new branch office in commercial centre and major cities.j


Hospitality Projects

Nusa Raya Cipta contractor has been appointed as main contractor for The Regent Bali on Sanur Beach. Carlson Hotels one of the world’s leading hotel companies andHotels, one of the world s leading hotel companies, and The Mayapada Group have announced their partnership to bring luxury brand Regent to Indonesia. Scheduled to open in 2011, The five-star Regent Bali will consist of 150 p , grooms and 50 villas, each equipped with a private swimming pool.


Aston entered the Indonesian market in the late nineties and has an underlying portfolio consisting of 44 properties including hotels, condotels, resorts, serviced apartments and boutique villa resorts, of which 25 are operational and 19 under development due to open between now and 2011.


Whiz HotelAnother new chain hotel Intiwhiz International launched theAnother new chain hotel, Intiwhiz International, launched the grand opening of Whiz Hotel Yogyakarta, the first hotel of Whiz Hotels chain developed by the company. Intiland continues to assess the potential for developing Whiz Hotel in major cities in Indonesia such as in Jakarta Surabaya Medan BandungIndonesia, such as in Jakarta, Surabaya, Medan, Bandung, Malang, Manado and Balikpapan, and also in Bali island.

The opportunity to develop the hotels is done through strategic cooperation scheme with the landowners build-operate-transfercooperation scheme with the landowners, build-operate-transfer (BOT), and with Intiwhiz acting as the hotel management operator. As for Bali, the company plans to build two Whiz Hotels at the same time.

The hotels will be located in Kuta and Legian. Whiz Hotel Kuta is located on Jalan Kartika Plasa, Kuta—one of the main tourist destination areas in Bali. The hotel will have four floors with 164 rooms and is built on a 2 000-square-meter plot of land Whizrooms, and is built on a 2,000-square-meter plot of land.WhizHotel Seminyak is built on a 2,500-square-meter plot of land and will have 160 rooms.


Health Projects

The Department of Health to modernize the provincial hospital to accommodate more patients and to make improvement by increasing service quality in order to fit with international standardizationstandardization.

Development of the international standard facilities starting this year in Dr Cipto Mangunkusumo Hospital in Jakarta, Sanglah Hospital in Denpasar and Dr M.Djamil Hospital in Padang, West Sumatra RSUP Cipto Mangunkusumo hospital expansion to include: integrated PolyclinicSumatra. RSUP Cipto Mangunkusumo hospital expansion, to include: integrated Polyclinic, ICCU, ICU, Medical Care Unit VIP/VVIP, Central sterilization and Carpark, with a total floor space of 80,000 square meters


Health Projects

One of biggest hospital operator, PT Sejahteraraya Anugrahjaya, which owns Mayapada Hospital in Tangerang, completed on adding an additional wing to the facility of the existing hospital. Besides the hospital expansion, Mayapada also plans to build a hospital in Cilandak, South Jakarta. currently still working on the hospital plan, with construction expected to start in 2011.


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Education Projects

Government project still have big contribution for all education projects. In order to prepare a place to educate of professional civil servant, government to start b ild f f Th I tit t f P bli Ad i i t ti (IPDN) l t d ibuild four new campus of The Institute of Public Administration (IPDN) located in Makassar, Manado, Rokanhilir and Bukittinggi


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Education Projects

The biggest state university in Indonesia, University of Indonesia (UI) also have plan to build the vocation building to accommodate around 9,900 students, 240 teaching staffs and 110 l ith ll b ildi f 32 000110 employees with overall building area of 32,000 square meters from four hectares of land area

. Another the upcoming education project, Australian International School (AIS) also have plan to build new schools in Bali and Pejaten Raya (Jakarta). AIS has assigned p j y ( ) gDull Olsen Weekes Architects (DOWA) based in Portland, Oregon to the task of producing a Master Plan for new schools.


Industrial Projects

The large inflows of Foreign Direct Investment (FDI) into Indonesia's manufacturing sector is very important to generate industrial projects in Indonesia One of the biggest joint venture project in steel industry PTIndonesia. One of the biggest joint venture project in steel industry. PT Krakatau Steel (KS) and South Korea’s POSCO agreed to invest up to US$6 billion to build the steel plant, which will be located near KS’s existing plant and produce 4-meter steel platesg p p p


Industrial Projects

IL’oreal Group is planning to build another plant in Indonesia to produce its consumer products for brands such as Gamier and LOreal Paris the plants capacity would beIproducts for brands such as Gamier and LOreal Paris, the plants capacity would be "very large" compared to the existing plant in Ciracas, East Jakarta, and will be the largest plant in the world with investment value is $50 million.


Infrastructure Projects

The state-owned company in transportation sector to be major players in transportation projects. PT Angkasa Pura I, the state-owned airport operator company, plans to expand five airports in the country in the next two or three years with an investment reaching Rp4 trillion. The airports to be expanded are Ngurah Rai in Denpasar, Bali, Sepinggan in Balikpapan, Adi Sutjipto in Yogyakarta,expanded are Ngurah Rai in Denpasar, Bali, Sepinggan in Balikpapan, Adi Sutjipto in Yogyakarta, Juanda in Surabaya and Ahmad Yani in Semarang

The Indonesian port authority Pelebuhan Indonesia II (Pelindo II) to prepare for a US$110.98mn breakwater and dredging project, located in Tanjung Priok Seaport, that will serve as a foundationbreakwater and dredging project, located in Tanjung Priok Seaport, that will serve as a foundation for the port’s larger expansion project, which covers the development of four terminals.


Utiliti P j tUtilities Projects


Utiliti P j tUtilities Projects

PT General Energy Bali (GEB) has kicked off the development of thermal power plant(PLTU) worth Rp7 trillion in Celukan Bawang, Gerokgak sub-district, BulelengRegency, Bali, in collaboration with two large Chinese companies, China HuadianEngineering Corporation Ltd and Chian Huadian worth Rp 7 trillion. This project wasdelayed for two years and have a capacity of 3 x 142 MWdelayed for two years and have a capacity of 3 x 142 MW.


Oil G & Mi i P j tOil, Gas & Mining Projects


Projects Highlights


Projects HighlightsProjects Highlights






Projects HighlightsProjects HighlightsIndonesia's Nusantara Regas has picked Golar LNG to build a liquefied natural gas receiving terminal near Jakarta, Nusantara Regas is a joint venture by state energy firm Pertamina and local gas distribution firm PT Perusahaan Gasenergy firm Pertamina and local gas distribution firm PT Perusahaan Gas Negara (PGN), for a 3 million tonnes a year receiving terminal.


Documents

2010 11 BCI Asia Construction Outlook 2011