Industrial estate developer Kawasan Industri Jababeka is acquiring two tourism-estate companies in West Java valued at Rp 1.5 trillion ($177 million) in a bid to sustain its growth, a top executive said on Sunday.
The company will acquire Banten West Java Tourism Development and Tanjung Lesung Leisure Industry. A 1,500-hectare site controlled by Tanjung Lesung will be used to serve tourists in West Java.
“We are looking for a fresh field as the manufacturing estate business is becoming saturated,” Setyono Djuandi Darmono, president director of Jababeka, told the Jakarta Globe.
“This is a strategic position for Jababeka because we are experts in township development and infrastructure services, as well as in other fields.”
Both of the takeover targets have been formally recognized as property companies with a focus on eco-tourism. That recognition was given by the National Development Planning Board (Bappenas) in its development plan for this decade.
Darmono said the acquisition deals would be signed next month and Jababeka would have complete ownership and control of the companies next year.
“The land has already been bought and it has been certified by the National Land Agency [BPN],” he said.
To finance the acquisitions, the company is seeking funds through a rights issue.
According to Banten’s Web site, the tourism site controlled by Tanjung Lesung Leisure Industry will be turned into an integrated resort hoping to attract domestic and international visitors.
“This is a business with great potential. Just imagine the 24 million people of Greater Jakarta seeking new alternative sites to spend their holidays,” Darmono said.
The resort would contain three-, four- and five-star hotels, an 18-hole golf course, a 300-berth marina, connected canals for waterfront homes, a marina village with shops, a restaurant, services and entertainment, an education campus, resort villas, apartments, a traditional village, yachting facilities and beach club.
As Banten has an original ethnic group, the Baduy, Darmono said he planned to build a Baduy-themed village on the resort to attract tourists. The site is also home to Ujung Kulon, a nature preserve that has rhinoceroses, and the company may build a zoo at the estate, he said.
Darmono said that as a site dedicated to tourism, it would face less competition than one devoted to manufacturing or residential property.
“We might be the only player to develop tourism in Banten,” he said.
Darmono said the business would make a significant contribution to Jababeka’s revenue. In the first half, the firm’s revenue increased 11 percent to Rp 369 billion and net income rose 8.5 percent to Rp 47.8 billion.
Jababeka owns 1,570 hectares of industrial field in Cikarang, West Java, and another 1,000 hectares in Cilegon, Banten. The firm also owns 1,400 hectares of housing at Cikarang.
Source: The Jakarta Globe