Intiland is establishing a joint venture company with one of its subsidiaries Mitbana Urban Development Fund. The cooperation allocates Capex (capital expenditure) investment worth IDR1 trillion for the development of the 270-hectare housing complex in Talaga Bestari, Tangerang. The Capex will be for the financing the ongoing construction of various projects.
PT Intiland Development Tbk (DILD) is one of the most reliable property developers in Indonesia for more than 45 years that brings quality living space with safe housing. The company develops a concept based on the latest trends and technologies, offering a wide range of selections of properties to potential customers. By 2020, the company has at least 23 properties on Java Island.
Mitbana is a joint venture between Mitsubishi Corporation and Surbana Jurong and PT Sinar Puspapersada, which was established in 2022. Mitbana is developing a strategic partnership in building a transit-oriented development (TOD) in an area of 51 hectares in Talaga Bestari.
Developing Talaga Bestari
The joint venture with Mitbana Urban Development Fund was done through the subsidiary of Intiland, PT Sinar Puspa Persada (SPP) with Mitbana Urban Development Fund III (MUDF III) to develop PT Inti-Mitbana Development (IMD). MUDF III holds 70% of shares, while the rest 30% by SPP. The cooperation allocates investments worth IDR1.1 trillion for the development of Talaga Bestari. The realization of the first quarter absorbed IDR400 billion.Â
Theresia Rustandi, Corporate Secretary of Intiland Development, said: “The cooperation is to synergize strength and experiences of both sides to develop the Talaga Bestari region in the future.”
The development of Talaga Bestari, which was launched in 1995, is divided into two phases. The first phase is township development covering 40 hectares area that includes housing, retail, food and beverages and a clubhouse facility. While the second phase includes an area of 11 hectares for the development of TOD that is completed with apartments, retail, transportation and commercial sections.Â
Intiland is optimistic about the national property industry will get better soon this year, looking at the investment trends and the recovery from the COVID-19 pandemic.
Challenges for property industry
According to Ferry Salanto, a Senior Associate Director from the Research Colliers International Indonesia, any property developers are not confident with the current condition that pushes revision on the projection of property. The unconfidence was based in the form of project delay, especially with projects that were still ongoing, he said in July 2021.
The delay such as rescheduling and a decrease in demand and supply at the same time causes stagnated or even a decrease in growth in the property industry.
According to Monica Koesnovagril, Director for Advisory Services from Colliers International Indonesia, the developers should be observant in seeing the dynamics of the property market because it is connected with the psychology of the people. Meanwhile, the weakening in price is predicted to continue until 2023, causing a price war between property developers.
