Jakarta. The Lippo Group on Tuesday (24/5) welcomed a business delegation from China's Shenzhen, which yielded an ambitious deal to develop Lippo's industrial estate in Cikarang with a total investment value approximately amounting Rp 190 trillion ($14.5 billion).
In a deal also inked on Tuesday, the Shenzhen Yantian Port Group and Country Garden Holdings together with the Lippo Group looks to establish two joint ventures, one to develop industrial zone and another to take care of commercial property projects.
Mochtar Riady, the founder of the Lippo Group, welcomed the delegation of 26 high profile business executives, as well as government officials.
"The two Chinese companies already know Lippo Group and they are interested in forming cooperations," said a director and chief marketing officer at Lippo Cikarang, an industrial estate arm of the Lippo Group.
The industrial zone, to be developed in Lippo Cikarang, is expected to draw tenants from Chinese companies, ranging from high tech manufacturers of mobile phone batteries and solar panels, to app developers.
"We came to Indonesia to look for good investment opportunities and a strong partner to fulfil this mission," said Ma Xingrui, who led the delegation.
Shenzhen Yantian and Country Garden on Tuesday signed a memorandum of understanding with the Lippo Group, in which they seek to contribute their extensive experience, resources and know-how in the development and marketing of modern industrial estates in the ambitious project.
The Rp 190 trillion project will also consist of commercial property buildings, including high-rise apartments and retail outlets.
Constructions are planned to kickstart in 2017.
Toto Bartholomeus, the president director st Lippo Cikarang, said these potential investors are essential to invite and help attract other large Chinese businesses to build facilities in Indonesia.
"The Indonesia-Shenzhen Industrial Park is a significant opportunity to strengthen the economic and investment ties between China and Indonesia," said Toto.
"We are most honored to be partners with these industry giants ... in the development of this ambitious project," he said.
Toto said the project is expected to provide a much needed growth stimulus to the expansion and development of the Eastern Jakarta Industrial Development as well as strengthening the possitioning of Lippo Cikarang industrial estate as the new Hub of the eastern corridor.
He also said that Lippo Cikarang seeks to stand to be a beneficiary of China's One Belt One Road Initiative in Southeast Asia, which various industry reports estimated that it could pump around $87 billion into infrastructure projects.
Shenzhen Yantian is a state-owned Chinese company that owns and operates the largest container port and integrated logistics services in Shenzhen, one of China's most vibrant financial and trading hubs situated north of Hong Kong. The company is expected to invest and construct the industrial zone.
Country Garden is a giant Chinese property developer based in Guangdong province of China. The company has developed over 200 high-end township area throughout China, Malaysia and Australia. The company plans to leverage its financial strength as well as experience in developing residential and commercial areas.
The Lippo Group, founded over 60 years ago, controls various large scale investments in integrated township developments, residential and commercial projects, healthcare facilities as well as retail activities in China, Hong Kong, Singapore, Korea and Macau.
The Jakarta Globe is affiliated with Lippo Cikarang through the Lippo Group, which controls both.