Jakarta. Tarumanagara Foundation, a Jakarta-based education and health institution, has begun development of a new campus and commercial property complex on the outskirts of Jakarta over the next two decades, aimed at generating revenue streams and reducing tuition fees.
The foundation estimated it needed at least Rp 20 trillion ($1.48 billion) to develop the project, dubbed Tarumanagara City, which will include a lifestyle center, offices, residential units, health facilities, a business park and convention center, as well as a campus that will host up to 11 different faculties of Tarumanagara University.
"As a foundation that aims to provides affordable education and healthcare, we need to think about how to generate a sustainable stream of revenue," Gunardi Lie, Tarumanagara Foundation chairman, told the jakarta Globe on Wednesday (18/10).
The foundation now generates 80 percent of its annual revenue from tuition fees and donations, while the remainder comes from investments and lease fees.
"Our goal is to be able to provide a tuition that is as cheap as the government's universities," Gunardi said.
Established by ethnic Chinese public figures in 1959, the foundation now operates a university and the Royal Taruma hospital in Jakarta. The foundation has purchased 138 hectares of land surrounding one of its campuses in Tangerang, Banten, since 1980 and started clearing the land in the past year.
"Next year we hope to start the construction in stages [...] For the first stage we plan to develop 22 hectares over the next five year for lifestyle and theme park," Gunardi said.
Several local and foreign investors in retail, theme park operators and property developers have expressed interest in joining the project, he said. The foundation commissioned London-architecture firm Benoy to draw the blueprint for the complex.
Property tycoon Ciputra, who led the foundation from 1979 to 2001 and now serves as honorary adviser, is hopeful for the success of the project.
"Every year the foundation asked me for donations. I hope this project would keep them from having to do that anymore," Ciputra said.