CapitaLand has invested around SG$300 million into several developments in Indonesia. This was through its first integrated development, The Stature Jakarta, with a development cost of approximately SG$220 million. This is coupled with an investment of SG$74.3 million in a serviced residence, Ascott Sudirman Jakarta, through its wholly owned serviced residence business unit, The Ascott Limited (Ascott).
According to Ronald Tay, CEO of CapitaLand Singapore, who also oversees the Indonesia market, the company has identified Indonesia as one of its key growth markets. He added that Indonesia’s real estate market is underpinned by “sound fundamentals” such as the country’s steady economic growth, rapid urbanisation and increasing domestic consumption. This is coupled with a rising affluent middle class and a young population.
Meanwhile, Lee Chee Koon, Ascott’s CEO, said that the company sees huge potential for growth in Indonesia through its Ascott, Citadines and Somerset brands. It also aims to bring its Millennial brand, lyf, to the country. Currently, Ascott has a portfolio of 16 properties with close to 3,000 units across six cities.
“The supply of international-class serviced residences is lagging the rising demand from expatriates and travellers, as more multinational companies set up offices in Indonesia,” Lee explained.
He added that the Indonesia government’s move to finalise plans for a national rail network will also help drive more economic and tourism growth. This will in turn generate demand for accommodation from business and leisure travellers.
Currently, The Stature Jakarta is jointly developed by CapitaLand and local developer Credo Group, through a 50:50 joint venture formed in 2014, a press statement read. Meanwhile, Ascott has expanded its portfolio in Indonesia by close to 600 units this year. This was with the addition of Ascott Sudirman Jakarta, Citadines Canggu Bali, as well as Somerset Sudirman Jakarta in July.