Investing in fast-growing Balikpapan
Along with China and India, Indonesia is one of a small group of countries with high economic growth amid worldwide slowdown in recent years. With an average of 6 per cent growth, Indonesia is forecast to become a ‘giant’ in the next few decades.
But which part of the archipelago has the highest economic growth? One of the answers is Balikpapan, a port city on the eastern side of Kalimantan. Data reveals that in 2012, Balikpapan’s economy grew at 10.17 percent.
Due to this high economic growth, Balikpapan has become one of the main destinations of local and foreign investment.
The strengthening of property investment in Balikpapan can be seen from the increased demands of residential property, particularly housing, business centres, and accommodation facilities.
“Balikpapan has already had four big-scale property developers investing in ‘super block’ properties, covering vertical residences, hotels, shopping centres, offices and convention venues,” said Chairman of Real Estate Indonesia, Setyo Maharso, as quoted in Kompas.
One of these super blocks is managed by Agung Podomora Land (APLN), which plans to expand on plans for Plaza Balikpapan, which it bought from PT Pandega Citraniaga Rp. 210 billion in 2012.
Other super block projects inlcude the Balikpapan Super Block (Pintu Air Mas Group) and CBD Balikpapan (Mitra Gemilang Mahakarya – MGM Land).
Suyanto Chandra, the CEO of MGM Land, said that his company has spent Rp. 500 billion on land acquisition and initial construction costs for a citywalk and hotel.
The Ciputra Group is also developing CitraCity Balikpapan, the newest super block to be located in a nine acre area in the MT Haryono area.
(YA; source: Kompas; featured image: staticflickr)