Jakarta. Meikarta, an integrated city constructed by industrial township developer Lippo Cikarang, is expected to spur economic growth in its surrounding areas, top executives at the Lippo Group said on Friday (18/08).
"Meikarta will become a residential and a new growth center. Development of this city will generate direct and indirect revenue to the West Java administration," Lippo Group deputy chairman Ginandjar Kartasasmita said.
He said the Rp 278 trillion ($20.81 billion) project is expected to have a multiplier effect on West Java.
"There may be no other project with this amount of investment in the years to come. This kind of project doesn't just create labor demand, but also spurs economic activity, from the upstream to downstream, all of which will be enjoyed by the West Java residents."
According to Ginandjar, the big demand for apartments in Meikarta and the fact that nine banks have been involved in providing financing for the future owners, shows that consumer purchasing power remains relatively steady.
Lippo Homes chief of marketing Jopy Rusli said Meikarta sold 99,300 apartments since May.
Lippo Homes is a division of Lippo Cikarang's parent, Lippo Karawaci.
"Meikarta's presence should stimulate the property industry, which has been seen as slowing," Jopy said, adding that this in turn will also help stimulate other related industries.
On Thursday, coinciding with the Independence Day celebrations, Meikarta launched another apartments sale for thousands of potential buyers.
Built on 500 hectares within Lippo Cikarang's industrial township, Meikarta, in the first phase of development seeks to build 250,000 apartment units that can accommodate up to 1 million people.
Construction works started in January 2016. The city expects to serve other industrial estates in the region such as Jababeka and MM2100.