Astra International president director Prijono Sugiarto, right, with director Paulus Bambang Widjanarko, center, and Astra Property chief David Iman Santosa at Menara Astra's topping-off event in Jakarta on Monday (20/02). (SP Photo/Ruht Semiono)
Astra to Set Aside $486m Capex for Property, Toll Roads This Year
BY :JAUHARI MAHARDIKA
FEBRUARY 21, 2017
Jakarta. Astra International, Indonesia's largest car distributor, plans to allocate Rp 6.5 trillion ($486 million) towards capital expenditure this year for its property and infrastructure subsidiaries.
These subsidiaries currently contribute less than 10 percent of the company's total revenues, but Astra sees larger potential from developing land the company owns, Astra Property chief David Iman Santosa said on Monday (20/02).
"We can make use of Astra's assets, such as plots that are currently used as car showrooms, which can be converted to property developments. We see more value in property development," David said.
The company is currently constructing Menara Astra, a 51-floor office building on land previously used by its car dealership on Jalan Jend. Sudirman in the Jakarta central business district.
Located nearby are the Anandamaya Residences, consisting of three high-rise apartment towers, developed by Brahmayasa Bahtera, in a joint venture with Astra's sister company Hongkong Land, a property investment, management and development group. Astra International and Hongkong Land are both controlled by British conglomerate Jardine Matheson.
David expects the projects to be completed by next year.
Astra and Hongkong Land also joined forces with local developer Modernland Realty as part of the Astraland Indonesia joint venture to build residential properties in East Jakarta, David said. These projects will require around Rp 4 trillion ($299 million) in investment this year.
Astra will also spend Rp 2.5 trillion on the acquisition of the Cikopo-Palimanan Toll Road from listed property developer Surya Semesta Internusa.