JAKARTA (TheInsiderStories) – Indonesian state-owned construction developer, PT Wijaya Karya Tbk (IDX: WIKA) set up an investment partnership with PT Perkebunan Nusantara (PTPN) VIII and PT Rajawali Nusantara Indonesia (RNI) to develop an 11,000-hectare industrial estate in Subang, West Java. The project is estimated to be able to generate long-term revenues with target up to Rp3,500 trillion (US$246.47 billion) in 50 years.
The signing of the cooperation of the three state-owned enterprises was carried out by the three company leaders, namely WIKA’s Managing Director Tumiyana, President Director of PTPN VIII Wahyu and RNI President Director B. Didik Prasetyo, in Jakarta, on Wednesday (07/03).
WIKA‘ President Director Tumiyana said the accumulated total investment value would be in the range of Rp 2,700 trillion. So for a count per year, the investment value is around Rp54 trillion. Regarding funding, it will be carried out in stages, and not direct spending.
Through the investment assessment, the three state enterprises will focus on building industrial, residential, commercial buildings, public facilities and infrastructure, both roads, water and gas, and others.
However, the collaboration is only in the stage of forming a joint venture for a week. The new companies will be able to start in early 2020. This project will be built on four points of land, namely 3,700 hectares (ha) and 2,300 ha belonging to PTPN and 5,249 ha and 11,300 ha belonging to RNI.
Furthermore, WIKA will establish a joint venture with PTPN VIII and RNI for industrial estate development plans in Subang. The process is projected to be completed within a week. After that, the three will discuss the concept design. This stage is estimated to take around 1 year.
According to Tumiyana, the prospect is very good. Subang and two other regions, Majalengka and Cirebon, have been designated by the Government as Rebana Triangles and are projected to become one of the largest special economic zones (SEZ) in Indonesia.
Subang also has enormous potential as an industrial area because it has direct access through Cipali Toll Road to Patimban Port and Kertajati Airport.
In the future, Subang’s growth will also be boosted by the high-speed train (HST) Jakarta-Bandung, which is carried out by the Chinese consortium through the Belt and Road Initiative (BRI) project.
This year, WIKA will spend the capital of Rp18.19 trillion, with 35.1 percent will be used for business development in the building and property sectors, while 21.7 percent will be for infrastructure business development. Both sectors are considered to have important roles in regional development efforts.
US$1 = Rp14,200
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