Sinar Mas Land to Start Construction on 'Indonesia's Silicon Valley' in H2

A scaled model of BSD City. (GA Photo/M. Defrizal)

By : Sarah Yuniarni | on 10:37 PM February 06, 2017
Category : Business, Property

Jakarta. Sinar Mas Land, the holding company of Indonesian diversified conglomerate Sinar Mas, plans to start construction on the first building in a smart city project claimed to be "Indonesia's Silicon Valley" in the second half of this year, a director at the company said on Monday (06/02).

The project is located in its signature township of Bumi Serpong Damai, known as BSD City, in Tangerang, Banten.

"We are currently drafting the technical design for the [first] building," Sinar Mas Land managing director Dhony Rahajoe told the Jakarta Globe.

The building will be part of a "digital hub" property development — built on a 25.86-hectare site in BSD City's business district — set to become home to IT-based companies, research centers, software developers, computer designers and animation-video production companies.

This digital hub will be worth Rp 3.2 trillion ($240 million) in investment and is expected to be completed in 2020.

It will also be the center of a smart city development by Sinar Mas Land's listed property developer arm Bumi Serpong Damai, which has developed BSD City, an urban development on the outskirts of Jakarta that has now expanded to more than 6,000 hectares — an area half the size of Paris.

There is no detail yet on the amount of total investment needed for the smart city project.

The smart city will offer high-speed internet connection, solar panel charging stations and a low-emission modern transportation network — tailor-made for information technology startups and panders to the green business model.

Sinar Mas Land also plans to offer a smart app for the smartphone which can be used as a mobile payment app, or e-wallet, customer loyalty program, community platform and many more. It can be used to access multiple services available in the smart city and make life simpler.

In May last year, Sinar Mas Land forged a partnership with high-tech giant Huawei Technologies to build a fiber optic network in BSD city.

Property developer Bumi Serpong Damai posted Rp 1.16 trillion in net income in the first nine months of last year, down 33 percent from Rp 1.73 trillion in the year prior.

Bumi Serpong Damai, which traded under the BSDE stock ticker at the Indonesia Stock Exchange (IDX), closed 0.26 percent lower on Monday at Rp 1,890, weaker than the 0.66 percent gain in the benchmark index on the day.

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