Lippo Karawaci to Build Urban Homes for Indonesia's Growing Middle Class


NOVEMBER 16, 2016

Jakarta. Property developer Lippo Karawaci announced plans on Wednesday (16/11) to build affordable urban homes for the lower middle-income earners over the next five years.

The project will kick off with 2,000 housing units at Lippo Village in Tangerang, Banten. It expects to build 10,000 units per year in various locations in the greater Jakarta area, including Lippo Cikarang in Bekasi, West Java.

Lippo Karawaci aims to build apartment complexes consisting of two-bedroom units comprising a floor area of around 40 square meters. The facilities will include Hypermart stores, shopping centers, multi-purpose rooms, outdoor sports arenas, children's corners, parks and easy access to public transportation.

The project is said to demonstrate Lippo's commitment to support the government's plan of providing affordable housing and bridge the housing shortfall of 11 million units.

According to Lippo Homes chief executive Chan Chee Meng, the rapid growth of Indonesia's middle class and its demographic bonus are good market prospects for affordable housing.

"Lippo Karawaci has experience and a proven track record, as well as large and diverse land banks, which qualify the company to work on such an ambitious project. We believe this project will be well-received by our target market," he said.

President director Ketut Budi Wijaya said Lippo Karawaci is in talks with potential partners from other countries to cooperate on the project.

Lippo Karawaci is Indonesia's largest property developer with vast land banks and strong recurring revenue. Its businesses include residential/township, retail malls, hospitals, hotels and asset management. As of Oct. 31, its market capitalization was valued at Rp 21 trillion ($1.6 billion).

Lippo Karawaci and the Jakarta Globe are both affiliated with the Lippo Group.