In this February file photo, industry Minister Saleh Husin, center, with Lippo Group president Theo L. Sambuaga, left, Lippo Cikarang chief executive Meow Chong Loh at Orange County. (Antara Photo/Muhammad Iqbal)
Lippo Cikarang Breaks Ground on Its Rp 250t Development
BY :TABITA DIELA
FEBRUARY 13, 2015
Jakarta. Lippo Cikarang — a subsidiary of Lippo Karawaci, Indonesia’s biggest listed property developer — kicked off on Thursday the construction of its Rp 250 trillion ($20 billion) Orange County project, a mixed-use property in the company’s industrial estate in Cikarang, Bekasi.
Lippo Cikarang will build two apartment towers in the first stage of the development, which will take up to 4 years to complete. The towers, called the Irvine Suites and Westwood Suites condominiums, were marketed on Nov. 29 last year and sold out in the same day.
Jopy Rusli, the chief marketing officer at Lippo Homes, a unit of Lippo Karawaci, said the supply for new homes in the Greater Jakarta area was “still short.”
“That’s why every time we launch a new product, people react enthusiastically,” he said.
The Orange County project stands on 322 hectares of land in the Lippo Cikarang Industrial Estate and will include a shopping mall, apartment buildings, office buildings, schools and a university, hospitals, movie theaters, hotels and a convention center, to be developed over the course of 20 years.
The project has drawn several strategic partner including Japanese trading house Mitsubishi; Suzuki Motor Indonesia; Toyota Tsusho, the trading arm of the Toyota group; and Oisha International College Foundation, a school foundation from Japan, said Lippo Cikarang chief marketing officer Stanley Ang.
The company will also soon launch a third apartment tower, named the Pasadena Suites, to meet demand for housing for expatriates in the area, which has pushed up apartment prices.
“In this area, Toyota [Tsusho] has built a serviced apartment block called Axia. A 40-square-meter room could fetch $2,700 a month in rental,” Stanley said, noting that this was double the cost of renting an identical apartment in Jakarta’s central business district.
A serviced apartment of the same size in the Sudirman Central Business District, home to the Indonesia Stock Exchange (IDX), rented for $1,379 at the end of 2014, according to data from Colliers International Indonesia, the local unit of the Seattle-based real-estate services company.
Jopy dubbed Orange County “The Globally Connected City” due to its location in an industrial estate that hosts many foreign companies and their expatriate employees, as well as its direct access to two future government infrastructure projects — the Cilamaya deep-sea port and the Karawang international airport.
The new port will provide more efficient logistics as it will allow very large ships to dock directly at an Indonesian port without having to stop in Singapore first to unload and reload consignments to smaller ships that can be served by Tanjung Priok Port in North Jakarta.
“We also heard there was a plan to build the Karawang international airport. That’s remarkable, because we could have something just like in [Tokyo] where there are two [international] airports, Kansai and Narita,” Jopy said.
He said he hoped the two infrastructure projects would boost demand for property in Orange County.
Industry Minister Saleh Husin, who attended the ground-breaking ceremony, declined to say whether the port or airport projects would go ahead.
“Ask the minister of transportation, please,” he said. “But of course we are pushing for the projects because they will accelerate economic growth in the area.”
Lippo Cikarang manages and develops 3,000 hectares of land comprising industrial and residential estates in Cikarang, about 30 kilometers east of Jakarta and home to some 820 manufacturing firms.
GlobeAsia is affiliated with Lippo Group.