World

Lippo to spend $29 billion to build 'Shenzhen' of Indonesia

JAKARTA: Indonesian conglomerate Lippo Group said yesterday it plans to build a US$21 billion (S$29.4b) centre near Jakarta targeting the automotive and electronic industries.

Billed as the "Shenzhen of Indonesia", the Meikarta project - which would include five-star hotels, shopping malls and universities - is Lippo's largest to date and will include partnerships with Japan's Mitsubishi Group, Toyota and Sanko Soflan Holdings.

Shenzhen is one of China's wealthiest and largest manufacturing hubs.

"Meikarta and its surrounding area has a real potential to be the most important city in Indonesia," the company said in a statement, referring to the project.

In the first stage of development, the industrial centre will be built on a 22 million sq m area in a corridor connecting Jakarta to the West Java city of Bandung.

The area is surrounded by industrial estates where millions of cars, motorcycles and electronic products are produced every year.

Pre-sales of residential units will start later this month, with the first stage of construction of the project to be completed in three years, the company said.

Lippo will finance its investment from its own capital, loans and pre-sales of properties in the project. - REUTERS

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