More homes, hotels built in empty offices

DutchNews, March 10, 2016

A quarter of the office space in Amsterdam and Eindhoven would have been left empty if efforts had not been made to turn it into hotels and homes, property advisory group JLL said on Thursday. 

However, by redeveloping empty offices as homes, the vacancy rate has been cut to around 15%, JLL said in the Financieele Dagblad.

In 2006, some two million square metres of office space was leased to new tenants but by last year this had fallen to 1.2 million square metres. By demolishing old properties and transforming others into housing, developers were able to keep the take-up at over two million square metres, for the first time since the economic crisis, JLL said. 

On average, around 15% of office property in the Netherlands is empty.  Fewer offices are needed because companies are working in smaller spaces as more workers are allowed to work from home.

Belated win for coastal protection in Spain

Environmentalists have won a decade-long battle to halt construction of a mega-hotel in one of Spain's largest coastal protected areas. However, the conflict between tourism and conservation is far from over.

Deutsche Welle, 24 February 2016

El Algarrobico has been for a decade one of the most controversial buildings in Spain

It was a clear win for environmentalists when Spain's highest court ruled the construction of a mega-hotel 'illegal'.

Just 14 meters away from El Algarrobico, a pristine beach of Cabo de Gata in southern Spain, the hotel - with its 21 floors and 411 bedrooms - stands vacant.

Its construction in the province of Almeria was dubbed one of Spain's biggest environmental scandals.

The Spanish Supreme Court recently declared the area environmentally protected and has banned construction. Environmentalists have hailed the decision a great success. But, the victory may have come a bit late.

A decade of confusion

"The countdown for the demolition of the Algarrobico's hotel has finally started," said Andalusian environment minister José Fiscal.

His triumphant announcement comes after years of backtracking and legal ambiguity with many locals holding the regional government responsible for the whole fiasco.

It all began in the 1980s, when construction of the hotel was first licensed. Then, the coastal area was not protected. But by the time construction began in 2003, that had changed and building was prohibited.

The hotel is located in a protected area within the natural park, Cabo de Gata

It wasn’t until 2006 that a local court first ordered an immediate halt to building. But the national environment ministry and the regional government of Andalusia failed to react to the ruling.

Then in 2012, the high court of Andalusia declared the hotel illegal and called for its demolition. But two years later, the court reversed its decision. The hotel was legal and building free to restart.

Now, 10 years after works were halted, Spain's Supreme Court has finally given the green light for its demolition.

The price of the victory

Tearing down the huge edifice will cost an estimated 7 million euros. The national and local government are to split the bill.

There is also the outstanding question of compensation for the hotel’s owners – who are demanding around 70 million euros.

Locals feel they too have lost out financially.

While environmental groups have long fought the hotel, it has always had majority support in the area – mainly for economic reasons.

"Once it was already constructed, it would have been best to make use of it," said Salvador Hernández, mayor of the nearby village of Carboneras.

Hernández argues the hotel would have brought much needed jobs to the village. "Instead, the people – through taxes – will pay for its demolition, and the consequences," he told DW.

Hernández believes the local community has emerged the biggest loser from a debacle that put Carboneras on the map for all the wrong reasons.

"Our village may be outstanding for many reasons, but our image has been destroyed by this scandal," he lamented.

The natural park Cabo de Gata is the largest coastal protected area in Andalusia

An uncertain future

And the construction that has loomed over Algarrobico for more than a decade will not disappear overnight.

The demolition is expected to produce around 60,000 cubic meters of waste, of which at least 40,000 cubic meters must removed and dumped. The remainder is to be used in the area’s recovery

Greenpeace at least sees an upside to this logistical challenge.

"The demolition work would bring around 400 new jobs," said Pilar Marcos, head of Greenpeace Spain’s coastal campaign.

"98% of the materials could be recycled. Moreover, it represents a new opportunity for sustainable tourism."

What the beach will look like once the process is over remains an open question. Whether it will be restored to its natural state – or become the site for new tourism services has yet to be decided.

Massive tourism is visible all along the Spanish coast

Tourism threatens conservation

According to WWF, tourism is one of the main causes for biodiversity loss in the Mediterranean region. Sea beds, coastal landscapes and marine dynamics are all at risk.

Spain is one of the world’s best-loved tourist destinations. In 2014, it was ranked third in the world for numbers of foreign tourists by the United Nations Tourism Organization.

But threats to environment from tourism are a problem the world over, with Mexico, China, Ecuador, Indonesia and Nepal just a few of countries where vacationers put the landscapes they come to enjoy at risk.

Authorities to relocate residents in E. Lombok

Panca Nugraha, The Jakarta Post, Lombok | Wed, 12/09/2009 3:39 PM

PROJECT: Ocean Blue Suite Villas, Sunut Island, Lombok

HST Architects & Designers Associates

Authorities of East Lombok administration will relocate around 450 residents of Gili Sunut island in exchange for a planned tourism resort by a Singapore-based investment company.

The administration spokesperson Sujono said on Wednesday that the residents who did not have any official land ownership would be moved to Teranjah-Anjah, Pemongkong village or about 10 kilometers from the island.

“We expect they can still go to sea since the would-be new place is not too far from beach,” Sujono said.

He added that the investor from PT Blue Ocean would construct new houses and public facilities, such as a public health center and an elementary school, for the residents.

The 7.5-hectares island has lured the investors with its white sands and natural views, he said.

PROJECT: Ocean Blue Suite Villas, Sunut Island, Lombok

HST Architects & Designers Associates

Destruction of Bandung’s Old Buildings Upsets Asia – Africa History

Friday, 27 March, 2009 | 17:38 WIB

TEMPO Interactive, Bandung: The destruction of old buildings in Braga Street, Bandung, has created concerns among the managers of the Merdeka Building and the Asia – Africa Conference Museum.

The Asia – Africa Conference Museum chief, Isman Pasha, is concerned that if it continues, historic buildings linked with the Asia – Africa conference will disappear. “We can no longer call Bandung the capital of Asia – Africa if its historic buildings continue to be destroyed,” Isman said last Wednesday.

A number of buildings around the Merdeka Building also have historic value as they were visited by the delegations and committees of the 1955 Asia – Africa Conference. Besides the hotels in Asia – Africa Street, Bandung, Pasar Baru as well as in Braga Street are currently being rebuilt.

Based on Tempo’s observation, some businesses in Braga Street have been shut down. There are at least three buildings with the sign “For Sale” in front of them. The buildings are damaged and dirty.

Other sites tht make up the Asia – Africa Conference history are a number of villas in North Bandung. Isman said some presidents stayed there. Artists and conference singers were accommodated by the Surabaya Hotel. He lamented that the regional government is not serious in conserving old buildings located throughout the city. He urged that the buildings be rebuilt by the owners.

ANWAR SISWADI

Buddha Bar Operator Challenges Jakarta Protest

Thursday, 26 March, 2009 | 17:15 WIB

TEMPO Interactive, Jakarta: Owner of the new Buddha Bar chain in Jakarta challenged protesters to settle the matter of its controversial name through legal means. Spokesman for the French bar chain in Jakarta, Hasdur Hasan, said “Let the court decide whether or not we are wrong.”

The statement defies a series of protests launched by Buddhist community and a suggestion made by the Religious Affairs Minister Maftuh Basyuni that the bar should be closed or change its name.

However chairman of the Council for Buddhist Youth Empowerment, a local buddhist organisation, Lieus Sungkharisma viewed the protests as unreasonable. “The protests were being politicized,” he said adding that such protest could deter investments. A member with the Provincial Legislative Council Nurmansjah Lubis said the matter is out of their authority.

The bar was opened late in 2008 with a launching ceremony led by the Jakarta governor, Fauzi Bowo. Housed in a dutch colonial era building at the heart of Jakarta up scale neighborhood, the bar is subject to another debate on its rights to operate a commercial public entertainment area in a building which was purchased and renovated by the city administration with almost US$ 2,9 million.

The bar is the fifth chain operated by the Paris-based George V Hotels and Ressorts, after branches in New York London, Dubai, and Kiev, and is the first in Asia, a region where Buddhism has substantial followers.

SOFIAN | GUARDIAN

Related Article:

Officials, Council say nothing wrong with Buddha Bar

Government Insists Lombok Deal Not Dead

The Jakarta Globe, Janeman Latul, March 17, 2009

High-ranking Indonesian government officials and Emaar International PJSC have denied that the Dubai-based development company has killed its massive $600 million project to turn a major portion of Lombok Island into another Bali.

“The government of Indonesia and Emaar have extended a delayed joint venture agreement to get the project underway for another three months,” an Emaar spokesman said in an e-mail from Dubai. The spokesman asked that his name not be used.

“Emaar has met its contractual obligations and the Indonesia Investment Coordinating Board [BKPM] has now asked Emaar for an extension of time to meet their obligations under the joint venture agreement,” the e-mail said.

Emaar closed its Jakarta offices on Friday and will coordinate further activities from Dubai, the spokesman said.

“Initially, Emaar set up its Jakarta office to establish a ground presence to drive the project forward and meet the JV obligations, leading to the finalization of negotiations with BKPM.”

However, Emaar does appear to be facing serious financial difficulties amid the global financial crisis, and is closing projects across the globe. The company suffered a 2008 fourth-quarter loss of $481.9 million, and its share price has fallen dramatically.

It was also reported from Dubai on Thursday that the company canceled its annual general meeting without giving a reason

Alwi Shihab, the presidential envoy to the Middle East region, told the Jakarta Globe by telephone from Taipei that the government received verbal confirmation on Friday from Emaar’s chairman, Muhammad Alabbar, that the project would be extended for another three months, although no written confirmation had yet been received.

“We could not get confirmation for the three-month extension until last Friday, when the UAE deputy prime minister and UAE Chamber of Commerce chairman met with the Indonesian task force,” Shihab said. “The chairman called Emaar’s chairman and asked him about the project. According to him, they agreed to extend the time for another three months,” he said.

Winarno Sujas, the Tourism Ministry’s director for business and investment, told the Jakarta Globe on Friday that Vice President Jusuf Kalla would summon related ministries for a meeting today in a bid to save the project.

Correction

On the Monday, March 16 edition of the Jakarta Globe, we reported that Dubai state-owned Emaar Properties PJSC had “announced” it was canceling a $600 million plan to develop a stretch of beach on the island of Lombok into a resort.

Later in the article, we attributed comments about the company’s problems dealing with Indonesian officials to Emaar Indonesia.

None of these comments came from an official spokesperson for the company.

They were all made by Emaar officials.

Neither Emaar Indonesia nor its parent company have made an announcement that they are quitting Indonesia.

We regret the error.

$600m Lombok Resorts Scrapped

The Jakarta Globe,  Janeman Latul, March 14, 2009 

Citing governmental paralysis and hinting that too many officials had their hands out, Dubai’s state-owned Emaar Properties PJSC has cancelled its massive $600 million property project that was to turn the pristine island of Lombok into another Bali. 

“We have closed our office in Jakarta starting Friday,” said Elly Savitri, Emmar Indonesia’s human resources manager. “Emaar has pulled out of its operations in Indonesia because the government cannot comply with the terms of the agreement with our joint venture company. 

“There have been too many delays on the realization of the project and the company just could not wait any more.” 

Elly also said Emaar had spent Rp 50 billion ($4.2 million) in consultancy fees on master plans. 

Winarno Sujas, the Tourism Ministry’s director for businesses and investment, told the Jakarta Globe on Friday that Vice President Jusuf Kalla had summoned the related ministries for a meeting this coming Wednesday in a bid to save the project. 

The cancellation of the project — announced with great fanfare in May 2007 by Kalla — is an enormous black eye for the Indonesian government and the local government of Lombok, West Nusa Tenggara Province. 

“Indonesia is our 16th global market and the Lombok development will scale up our property portfolio to a wider Southeast Asian region,” Muhammad Ali Al Abbar, Emaar Properties chairman, said at the project signing. 

The announcement of the failure of the project follows the recent pullout of the Saudi Binladin Group from a project to invest as much as $4.3 billion in developing rice crops in Merauke, Papua Province. 

The joint venture between Emaar and the state-owned Bali Tourism Development Corp. envisioned development of 1,200 hectares along seven kilometers of natural beachfront that would have transformed central Lombok’s Kuta and Tanjung An beaches over the next 12 years into a world-class resort and residential community consisting of 10,000 luxury villas, eight hotels and two 18-hole golf courses. 

Emaar’s Elly said the agreement stipulated that the government would provide a detailed master plan by last November to support infrastructure including an international airport, an access road to the property and finalizations of land acquisitions. The finalizations, however, never materialized. 

A plethora of government agencies failed to complete their part of the bargain and asked for an extension until this month. When Indonesian officials asked for another extension until June, Emaar called off its investment. 

“You understand the Indonesian government,” said an Emaar executive who asked not to be named, in a veiled reference to allegations of corruption in the local and central governments. 

Sumaryanto Widayatin, a special adviser to the Public Works Ministry, blamed unprofessionalism for the tangled negotiations. 

“I think it’s because the Ministry of Finance was worried about selling the land cheaply to Emaar,” he said, adding that the global economic crisis had also cut into the company’s liquidity. 

He said every large project in this country attracted officials who had their hands out. 

“Where in Indonesia do we not have the problem of corruption?” he asked.

Related Article:

Emaar Hospitality has The Address for expansion

Hotels complain about electricity rate hikes

Fadli, The Jakarta Post, Batam | Sat, 03/07/2009 2:19 PM 

 

Star-rated hotels and malls in Batam have been complaining about electricity rate hikes of between 40 and 52 percent, which state-owned electricity company PT PLN's Batam office has been applying since October 2008, a hotel owner said.

 

Anas, owner of Novotel Hotel Batam, said that as many as 42 star-rated hotels had complained, accusing the electricity company of being inconsistent with its rates.

 

"It previously agreed to apply old rates for hotels and malls until a decision by the Energy and Mineral Resources *ESDM* Ministry was made. Yet, it raised the rates by 40 percent for hotels and 52 percent for malls on Oct 1, 2008," Anas said.

 

With the new rate, he added, his hotel that previously only paid between Rp 300 million and Rp 400 million for electricity, now had to pay around Rp 600 million a month, or 40 percent of the hotel's total monthly operational costs.

 

"This is completely unreasonable. We don't know for how long we can survive. We are now counting down the days until we close our business in Batam," Anas said, adding that electricity costs should ideally be no higher than 20 percent of a hotel's monthly operational costs.

 

According to Anas, all hotels and malls in Batam were in arrears last month because of the new rates.

 

"It really worried us. Even the President said during his visit to Batam that fuel prices were down. The electricity rates must also be reduced," he said.

 

Anas noted that the electricity supply of at least four star-rated hotels was cut off last month due to payment arrears. The supply was only switched back on after Batam Deputy Mayor Ria Saptarika asked PLN for an exemption for hotels.

 

"PLN's behavior is really unprofessional. It's a terrible thing to do in this investment climate. But PLN is completely ignoring our pleas," Anas said, adding that hotels and malls could only tolerate electricity rate increases of up to 10 percent of the old rates.

 

Anas said hotels, through the Association of Indonesian Hotels and Restaurants (PHRI), had tried to meet with PLN and the municipal administration several times, without reaching any satisfactory outcome for the business community.

 

Head of Batam's Industry, Trade and ESDM Agency, Ahmad Hijazi, said his office was planning to meet ESDM Minister Purnomo Yusgiantoro to discuss the problem.

 

"The rate hike is linked to the quantity of gas needed to power PLN's electricity generators. So, we need his *Purnomo's* involvement," he said.

 

Meanwhile, Batam PLN's Director Zainuddin refused to comment on the matter.

Resort project not affected by turmoil

Claudia Sardi, The Jakarta Post, Pecatu | Thu, 02/12/2009 2:33 PM  |  Bali 

A Rp 3 trillion development on Pecatu Hill in Jimbaran in southern Bali is showing no signs yet of being affected by the global financial crisis, with developer PT Bali Pecatu Graha (BPG) selling 124.5 hectares of land to investors for an ambitious new property project. 

The Pecatu Indah Resort project will eventually comprise exclusive residences, international-standard hospitals and schools, shopping malls, a 15,000-person capacity convention center, and recreation places, including theme and water parks. 

"None of the investors has pulled out of the contract so far, and we just signed a new contract with Condotel last October," said Arturo Seril, BPG project manager. 

"The project is scheduled for completion in 2020. I'm still very optimistic that we can finish it without more major incidents." 

BPG had prepared the master plan for the project in 1998, but due to the Indonesian economic crisis and the two terrorist bombings on the island, the company only began rolling out the project in early 2006. 

The New Kuta Golf Course, which opened its doors in 2007, is the first completed project on the site. 

It will play host to the Indonesia Open tournament this February, and plans to house its guests at the partially finished New Kuta Condotel, operated by Best Western. Once complete, the resort will include at least five luxury hotels. 

Both the Westin and Raffles hotels have bought land here and will begin construction soon; tea giant PT Sosro has also invested and plans to branch out into the hotel sector with its first property in Pecatu. 

Another developer, PT Panorama Development Utama (PMA), has almost finished work on a 21-villa complex called Hole 17, set in the middle of the golf course. 

"Pecatu Indah Resort will be something unique on the island, nothing like Nusa Dua, which only has standalone hotels. We are going to provide a huge range of facilities in one single area, which makes it very attractive", Seril said. 

BPG, owned by Hutomo "Tommy" Mandala Putra, retains control of all 400 hectares of the land for the Pecatu Indah Resort. The firm is planning its own projects in the area including the Klapa, a four-story complex consisting of a restaurant, spa, beachfront disco and bars, currently under construction on a cliff overlooking the beach.

Related Article:

Budget hotels may buck property trend

Budget hotels may buck property trend

Benget Besalicto Tnb. , THE JAKARTA POST, JAKARTA | Thu, 02/12/2009 11:24 AM  

Slowing up: Three towers are under construction in Central Jakarta. Weaker demand and high interest rates are slowing down growth in the property sector this year, delaying start-up dates for planned building sites. (JP/Ricky Yudhistira)

Contrary to the slowing growth of the property industry as a whole, the budget hotels market is predicted to increase by 30 percent this year. 

That is because travellers will turn from the up market hotels to the mid market ones to cut costs during the economic crisis, said Djodi Trisusanto, a property analyst, who specializes in the hotel sector, with Jones Lang Lasalle Hotels. 

He said Wednesday that there have been a number of hotel groups starting to catch up with the rising demand for budget hotels.

“The Holiday Inn, for example, has set up Holiday Inn Express. Even the budget aircraft operator Air Asia has turned to the rising market by establishing the Tune Hotel in Malaysia. A number of Indonesian hotel groups have also set up  budget hotels.

“Among them, is Formula One. The other one is the Santika Hotel Group, which will set up Amaris hotels in several towns of Indonesia,” said Djodi, who is also the vice president of Jones Lang Lasalle.

He said that Air Asia and the Santika Hotel group will also join together to build budget hotels in Bali. 

“Both of them have bought landsites for hotel construction in Bali,” he noted.

According to him, the economic crisis has forced companies to cut their costs, including their traveling costs, causing them to turn to two or three star hotels instead of five star hotels as they did previously.

“During the last few months the five star hotels have seen their occupancy rate dropping by around 15 percent. 

“As the global economic crisis starts to bite into the Indonesian economy, I expect (these rates) to decrease significantly this year,’ he said on the sideline of a media briefing on the 2009 property outlook.

Despite the economic crisis, the companies will still need to travel for their businesses. But they will do so using two or three star hotels instead of five star hotels. 

“It happens not only in Indonesia. It’s been growing in China, countries of Europe, and America,” he noted.

“Frequency of business traveling will not be affected significantly as firms still need it for their businesses. But they will use budget hotels instead of luxury ones. Some flight companies have even increased the frequencies of flight schedules. Cathay Pacific, for example, has increased its flight frequency to Bali,” he added.

Meanwhile, Anton Sitorus, another analyst at the consultant company, predicted that overall, the growth in the property market would slow this year, with signs of a slow down already  detected in the  final quarter of last year.

The economy is predicted this year to grow by 4.7 percent, slower than  the 6.2 percent estimated for 2008.

“Due to the global economic crisis, the property market is facing slower business activities, and weaker demand, in addition to the still high interest rates. As a result, developers have had to cancel a number of property projects this year,” he said.

But he noted that the cancelled ones were those being planned, not the ones already under construction.

“For example, the ones planned to start in February this year will be rescheduled to later this year or even next year.

“But as far as we know there are no projects under construction which will be cancelled or rescheduled,” Anton said.

He said that with the economy slowing down and interest rates increasing, most people will tend to put their money into banks, instead of buying property.

Global recession overshadows property market

The Jakarta Post, Jakarta | Mon, 11/10/2008 11:13 AM 

 

Indonesia's property sector is already feeling the pinch from the global economic downturn as demand is slowing at a time when interest rate adjustments have become a necessity for developers to keep business going, a property consultant says.

 

PT Colliers International Indonesia said over the weekend in its latest survey that the slowdown had already been evident since the end of the third quarter, in particular in Jakarta and surrounding areas, hat it continues to be felt in the fourth quarter and most likely will continue to impact into next year.

 

Bank Indonesia's benchmark interest rate currently stands at 9.5 percent, with cumulative inflation already hitting double digits in the first ten months of the year.

 

Colliers' report comes just days after a similar survey by another property consultant, PT Procon Indah, which focused on the Greater Jakarta market and said that the industry is heading for a slowdown due to increases in interest rates and the effects of inflation on prices of materials and rental costs.

 

Colliers said the industrial sector in the Greater Jakarta area, for example, had already experienced lower transaction levels in the third quarter compared to the previous quarter as export-oriented companies cut back on their investment plans amid slowing demand.

 

Average rental rates in central business districts (CBD) rose in the same period slightly from Rp 87,268 per square meter per month to Rp 88,117 per square meter.

 

The total supply for CBD office stock is now reported to be 3.9 million square meters, up from 3.71 million square meters last quarter, while occupancy rates decreased slightly down to 88.76 percent from 89.62 percent previously.

 

Supply for strata title apartments grew by 3 percent in the second quarter and 0.91 percent in quarter three. On the demand side however, out of 77,277 apartment units under construction, only 65 percent were already taken up and net absorption for apartments in the third quarter reached 459 units, declining from 551 in quarter two.

 

"With the current total units being built equivalent to about half of the total existing units and anticipating additional supply from new projects over the next two years, the apartment market will be very tough in the future," the survey says.

 

The occupancy rate for retail space is expected to decline in the fourth quarter, with shopping centers adjusting their rental rates to meet market conditions.

 

Still, retail space supply is set to increase from 3.21 million square meters in 2007 to 3.31 million square meters.

 

Meanwhile, the hotel occupancy rate nation-wide increased by 0.82 percent from the second quarter, with the five-star category dominating the market at 47.5 percent.

 

The survey reports that in the last quarter of the year hotel occupancy rates in Bali will fare better than most cities in the country -- including Jakarta and Surabaya -- due to the large local tourist potential. (dis)

Planned heritage site hotel protested

Blontank Poer, The Jakarta Post, Surakarta | Fri, 11/07/2008 10:55 AM  

Plans to build a hotel in the historical Vastenburg Fortress in Surakarta are facing protest from artists and cultural experts, who claim the proposed construction has the potential to damage the heritage site. 

"It would be better if the municipal administration and the investors reviewed the plan before causing any potential damage to the city," Chairman of Surakarta's Arts Council Murtidjono said. 

Speaking at the Surakarta mayor's residence Monday evening, Murtidjono said the review was urgent because Surakarta recently pioneered the establishment of the Indonesian Heritage Cities Network (JKPI). 

The Surakarta mayor along with investors, environment experts (Amdal) and representatives from Central Java's conservation center took part in the discussions. 

Mayor Joko Widodo (Jokowi) said the matter put his administration in a dilemma. He said he personally thought it was deplorable that the city's heritage sites and buildings were vanishing. 

"Under normal circumstances, I would have to issue the license to the hotel investors because all the requirements have been fulfilled," Jokowi said. 

These requirements include an overview by Amdal, an examination of the appropriateness of the planned hotel and a letter of recommendation from the conservation center. 

"If I refuse to issue the license, the investors will sue me," Jokowi said. 

Murtidjono said Amdal lacked objectivity and transparency. 

"The Amdal team has based its analysis mainly on the economic considerations and failed to acknowledge the archaeological analysis," he said. 

Located between the colonial administration office (now the city hall) and the Surakarta Palace, Vastenburg Fortress was built in 1750 by Dutch colonizers. 

The fortress was a surveillance post used to monitor the movement of palace troops, who the colonial administration feared were capable of rebellion. 

The investor, Robby Sumampouw, argued the construction would not damage the main walls and structure of the building. 

"We will not flatten the walls. We will build the hotel inside them," Robby, also owner of the Hailai entertainment center in Jakarta, told The Jakarta Post.

 

He said he would build a nine-story boutique hotel on the site, equipped with a convention hall and luxurious shopping center. 

He said colonial-style architecture would be adopted for the Rp 300 billion project, which will begin construction by the end of the year.

Emaar Jakarta tower to be the tallest in SE Asia

The Jakarta Post, Jakarta | Tue, 05/06/2008 2:01 PM

 

Dubai-based real estate giant Emaar Properties plans to build a landmark tower in Jakarta, which would be the tallest skyscraper in Southeast Asia, a presidential envoy says.

 

Special envoy for the Middle East Alwi Shihab said Monday the Chairman of Emaar, Mohamed Ali Alabbar, had proposed the project to President Susilo Bambang Yudhoyono during an informal meeting on Saturday.

 

"At the moment, we're still looking for the right location in Jakarta for the site of the project... we are ready to build the tower, our homework is to find the right location, " Alwi told The Jakarta Post.

 

Emaar, the largest land and real estate developer in the Gulf, is famed for its ongoing construction of Burj Dubai in Dubai, which would be the highest skyscraper in the world. The 718 meter-tall building is scheduled to be fully constructed by the end of this year.

 

Alwi said the Jakarta project was part of the company's commitment to invest in Indonesia.

 

In March, Emaar signed a joint venture agreement with the state-owned Bali Tourism Development Corporation to build an integrated tourism project in southern Lombok, West Nusa Tenggara, with a total investment of US$600 million. During the initial stage, they would build four luxury hotels, including Ritz Carlton and Giorgio Armani hotels, along with related tourist facilities.

 

"Emaar has started building its offices in Lombok and is carrying out trainings in conjunction with the tourism ministry for locals to assist in its projects," Alwi said, adding that up until now, the Indonesian government had received investments worth almost $5 billion from the Middle East and that it was targeting to attract $10 billion by 2009.

 

He said among those committed to invest in the country was Ras Al-Khaimah of the United Arab Emirates, which would bring a total investment worth $1.5 billion to construct an integrated port at Tanjung Api-Api, and a railway line from Palembang to Tanjung Api-Api.

 

Another company, Dubai Drydock, is ready to invest up to US$1 billion for the construction of a shipyard and an industrial city in Batam.

 

The envoy said the company had opened its office in Indonesia and had paid for the project's land, while adding that conglomerate company Pacific Inter-Link planned to invest US$500 million in a palm oil refinery plant in Dumai, Riau.

 

Dubai-based Al Ghurair Group also showed its commitment to invest around $500 million in the renovation and improvement of old refinery plants.

 

Previously, Saudi Telecom Company's Axis invested US$1 billion in the telecommunication industry. Alwi said the investors hoped to fully realize their commitments soon.

 

"Some of them complained that bureaucracy in our country has been too slow in responding to their proposals. While it only takes a few months to manage permits in Malaysia, for example, it could take years in Indonesia," Alwi said.

 

This had caused many of them to invest in Malaysia and Singapore instead, he added. (dia)