Construction Outlook 2011

A
Agus Di
Dinar, C
Country
t DiDirector
t off BCI A
Asia
i

Jakarta, 24 November 2010

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Bank Indonesia Survey
Perkembangan Properti Komersial Triwulan III 2010

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Bank Indonesia Survey
Survey Harga Properti Residensial Triwulan III 2010

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 National Overview Indonesia

The Indonesia construction sector is look very promising, is given a boost

by the attractive purchasing environment
environment, low interest rate
rate, undervalued
property prices compared with the region and Indonesia has shows a solid
potential as a promising emerging property market for foreign investors.

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 National Overview Indonesia

In government projects perspective, Indonesia has a market-based economy in

which the government plays a significant role. There are 139 state-owned
enterprises, and the government administers prices on several basic goods.

The government budget allocation to infrastructure spending — to build ports,

airports toll roads and bridges and other vital infrastructure,
airports, infrastructure have positive impact for
construction sector.

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 National Overview Indonesia

Construction starts value for all project categories in Indonesia

(V l iin millions
(Value illi rupiah)
i h)

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 National Overview Indonesia

Construction starts value for all project categories in Indonesia

(Value in millions rupiah)

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Residential Projects
The development
p of large-scale
g housing
g areas and
new towns surrounding Jakarta due to the ever-
increasing demand for new houses for people living
and/or working in the city.

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 Residential Projects

CapitaLand’s wholly-owned serviced residence business unit, The

Ascott Limited (Ascott), has expanded its presence into Bali,
Indonesia, by clinching a contract to manage a 174-unit serviced
residence in K
Kuta.
ta To be named Citadines Bali Kuta,
K ta the ser
serviced
iced
residence will open in 2012.

Besides Citadines Bali Kuta, Ascott will open its first Citadines
property in Indonesia, Citadines Jakarta Quartier, later this year;
Citadines Jakarta Rasuna in 2011 and Ascott Kuningan Jakarta in
2012. Currently, the company has five operating serviced residences
in Indonesia, namely Ascott Jakarta, Somerset Berlian, Somerset
Grand Citra, and Country Woods in Jakarta as well as Somerset
Surabaya Hotel & Serviced Residence.

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 Residential Projects

PT Agung Podomoro Group, one of the country’s largest

and respected property developer,
developer is planning to raise fresh
cash from selling shares via initial public offering at the end
of 2010. From the IPO will be used by Agung Podomoro to
complete the constructions of apartments, hotels and
offices in Central Park project and to acquire and develop
new projects, i.e. Green Lake Sunter and other projects
which will be carried out in the next two years.

The renowned
Th dd
developer
l S
Summarecon i b
is building
ildi a
township in Bekasi, Jawa Barat called Summarecon Bekasi.
Of the 250 hectare of land available, 35 percent will be
allocated as commercial area.

The developer will build 16 clusters whereby each consists of

6 to 7 hectares with 200 to 300 houses. In addition, there will
also be apartments, shopping mall: Summarecon Mall
Bekasi trade center,
Bekasi, center office park,
park shopping houses
houses, modern
fresh market, as well as an artificial lake which serves as
retention basin.

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 Retail Projects

Indonesia, with its high population and growing

middle class, is among the most attractive
retail markets in the world. PT Matahari Putra
Prima Tbk
Tbk, hypermarket chain
chain, has planned to
open up 13 new Hypermart outlets and three
Foodmart outlets consisting of 11 Hypermart
outlets in Java, one outlet in Sumatra, one
Hypermart outlet in Ambon, and Foodmart
outlets in Jakarta and Bali.

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 Retail Projects

Another hypermarket chain Lotte, which bought Makro Indonesia in 2008, targets to build 30 new
hypermarket class outlets by the end of 2015 with a total investment value of US$860 million. At the
minimarket level,
level until end of 2010 minimarket chain
chain, Indomart is targeting to open 750 new outlets
while its main competitor Alfamart plans to open 600 new outlets.

The modern market is growing and will continue to expand due the increase in the size of the
country's
country s middle class as well as changes in lifestyles
lifestyles. But at the same time
time, the modern market
would not easily take over the domination of the traditional markets, because several surveys show
the modern markets still could not compete with the traditional ones in terms of providing fresh food.

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 Office Projects

In general, based on projects location, developers are

moving southward to construct new office buildings in
the capital city in a search for cheaper land prices and a
location image. It is surrounded by established prime
residential and commercial developments
developments.

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Office Projects

Adhi Karya secured a new contract of

Mangkuluhur Office Tower development owned
by PT Wisma Purnayudha Putra sited at Jalan
Gatot Subroto Kav.1, Jakarta.

The project's value is worth of Rp455.5bn and will

be completed in 21 months. The scope of work is
including structure,
structure architecture
architecture, and MEP
MEP. Such
Design and Build project will have of 3 basements
floor and 30 offices floor.

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Office Projects

An upcoming iconic office building on re-sedign stage, named Grand Sahid Plaza
Office, Sahid Group have plan to build two 59
59-storey
storey office towers contain four
levels of basement, with a floor space of about 132,000 square meters.

An embassy project, New Australian embassy complex at Patra Kuningan is

expected
p to be construct in first q
quarter 2011,, to include: Chancery
y Building
g with a
floor space of 19,000 square metres, Ambassadors residence, Immigration &
Passports offices, townhouses and other supporting facilities. In line with emerging
financial and banking sector, the national bank aggressive to open their new branch
office in commercial centre and major j cities.

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Hospitality Projects

Nusa Raya Cipta contractor has been appointed as main

contractor for The Regent Bali on Sanur Beach. Carlson
Hotels one of the world’s
Hotels, world s leading hotel companies
companies, and
The Mayapada Group have announced their partnership
to bring luxury brand Regent to Indonesia. Scheduled to
open
p in 2011,, The five-star Regent
g Bali will consist of 150
rooms and 50 villas, each equipped with a private
swimming pool.

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Aston entered the Indonesian market in the late nineties and has an underlying portfolio consisting
of 44 properties including hotels, condotels, resorts, serviced apartments and boutique villa resorts,
of which 25 are operational and 19 under development due to open between now and 2011.

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 Whiz Hotel
Another new chain hotel
hotel, Intiwhiz International,
International launched the
grand opening of Whiz Hotel Yogyakarta, the first hotel of Whiz
Hotels chain developed by the company. Intiland continues to
assess the potential for developing Whiz Hotel in major cities in
Indonesia such as in Jakarta,
Indonesia, Jakarta Surabaya,
Surabaya Medan
Medan, Bandung
Bandung,
Malang, Manado and Balikpapan, and also in Bali island.

The opportunity to develop the hotels is done through strategic

cooperation scheme with the landowners
landowners, build-operate-transfer
(BOT), and with Intiwhiz acting as the hotel management
operator. As for Bali, the company plans to build two Whiz Hotels
at the same time.

The hotels will be located in Kuta and Legian. Whiz Hotel Kuta is
located on Jalan Kartika Plasa, Kuta—one of the main tourist
destination areas in Bali. The hotel will have four floors with 164
rooms and is built on a 2
rooms, 2,000-square-meter
000-square-meter plot of land.Whiz
land Whiz
Hotel Seminyak is built on a 2,500-square-meter plot of land and
will have 160 rooms.

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Health Projects

The Department of Health to modernize the provincial hospital to accommodate more patients
and to make improvement by increasing service quality in order to fit with international
standardization.
standardization

Development of the international standard facilities starting this year in Dr Cipto Mangunkusumo
Hospital in Jakarta, Sanglah Hospital in Denpasar and Dr M.Djamil Hospital in Padang, West
Sumatra RSUP Cipto Mangunkusumo hospital expansion,
Sumatra. expansion to include: integrated Polyclinic
Polyclinic,
ICCU, ICU, Medical Care Unit VIP/VVIP, Central sterilization and Carpark, with a total floor
space of 80,000 square meters

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Health Projects

One of biggest hospital operator, PT Sejahteraraya Anugrahjaya, which owns

Mayapada Hospital in Tangerang, completed on adding an additional wing to
the facility of the existing hospital. Besides the hospital expansion, Mayapada
also plans to build a hospital in Cilandak, South Jakarta. currently still working
on the hospital plan, with construction expected to start in 2011.

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 Education Projects
.

Government project still have big contribution for all education projects. In order
to prepare a place to educate of professional civil servant, government to start
b ild ffour new campus off The
build Th IInstitute
tit t off Public
P bli Ad
Administration
i i t ti (IPDN) located
l t d iin
Makassar, Manado, Rokanhilir and Bukittinggi

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 Education Projects
.

The biggest state university in Indonesia, University of Indonesia

(UI) also have plan to build the vocation building to
accommodate around 9,900 students, 240 teaching staffs and
110 employees
l with
ith overallll b
building
ildi area off 32
32,000
000 square
meters from four hectares of land area

. Another the upcoming education project, Australian International School (AIS) also
have pplan to build new schools in Bali and Pejaten
j Raya
y ((Jakarta).
) AIS has assigned
g
Dull Olsen Weekes Architects (DOWA) based in Portland, Oregon to the task of
producing a Master Plan for new schools.

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Industrial Projects

The large inflows of Foreign Direct Investment (FDI) into Indonesia's

manufacturing sector is very important to generate industrial projects in
Indonesia One of the biggest joint venture project in steel industry
Indonesia. industry. PT
Krakatau Steel (KS) and South Korea’s POSCO agreed to invest up to
US$6 billion to build the steel plant, which will be located near KS’s
existing
gpplant and p
produce 4-meter steel p plates

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 Industrial Projects

L’oreal Group is planning to build another plant in Indonesia to produce its consumer
Ip
products
roducts for brands such as Gamier and LOreal Paris
Paris, the plants capacity would be
"very large" compared to the existing plant in Ciracas, East Jakarta, and will be the
largest plant in the world with investment value is $50 million.

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Infrastructure Projects

The state-owned company in transportation sector to be major players in transportation projects.

PT Angkasa Pura I, the state-owned airport operator company, plans to expand five airports in the
country in the next two or three years with an investment reaching Rp4 trillion. The airports to be
expanded are Ngurah Rai in Denpasar, Bali, Sepinggan in Balikpapan, Adi Sutjipto in Yogyakarta,
Juanda in Surabaya and Ahmad Yani in Semarang

The Indonesian port authority Pelebuhan Indonesia II (Pelindo II) to prepare for a US$110.98mn
breakwater and dredging project, located in Tanjung Priok Seaport, that will serve as a foundation
for the port’s larger expansion project, which covers the development of four terminals.

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Utiliti Projects
Utilities P j t

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Utiliti Projects
Utilities P j t

PT General Energy Bali (GEB) has kicked off the development of thermal power plant
(PLTU) worth Rp7 trillion in Celukan Bawang, Gerokgak sub-district, Buleleng
Regency, Bali, in collaboration with two large Chinese companies, China Huadian
Engineering Corporation Ltd and Chian Huadian worth Rp 7 trillion. This project was
delayed for two years and have a capacity of 3 x 142 MW.
MW

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Oil Gas
Oil, G & Mining
Mi i Projects
P j t

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 Projects Highlights

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Projects Highlights

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Projects Highlights

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Projects Highlights

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Projects Highlights
Indonesia's Nusantara Regas has picked Golar LNG to build a liquefied natural
gas receiving terminal near Jakarta, Nusantara Regas is a joint venture by state
energy firm Pertamina and local gas distribution firm PT Perusahaan Gas
Negara (PGN), for a 3 million tonnes a year receiving terminal.

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