After President Joko Widodo announced the plan to move Indonesia’s capital to East Kalimantan province, this Monday, Indonesia developers enthusiastically join capital relocation project.
Agung Podomoro Land, one of Indonesia’s biggest property developer, even put a full-page ad in a national newspaper. That ad published a day after the announcement. Within the ad, the group offered investment opportunities in a new apartment and commercial complex in the city.
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The groups mentioned that the complex will have luxury apartment towers, a five-star hotel, shopping malls, and other facilities. It will be strategically located a 20-minutes drive from the future capital.
From that ad, Agung Podomoro Land’s share price gained 8% raise.
The advantage for Property developers
This relocation will give a direct advantage to Indonesia’s property developers and construction companies. Especially, those operating in East Kalimantan and potential players to take parts in the development, they will get the maximum benefit.
One of those property developers is Pembangunan Perumahan (PP) Property. The company is a state-owned construction company. The company mentioned that it currently owns a hotel and shopping mall in Balikpapan, East Kalimantan’s largest city. Consequently, its shares jumped to 18% on Tuesday, a day after the announcement.
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Other than that, Bumi Serpong Damai is also on the rise. Bumi Serpong Damai is another major property developer in the country. The company has more than 5 sq. km of land in East Kalimantan.
The land is in Balikpapan and Samarinda, the provincial capital. Both cities are close to the site of the future capital.
The last is Wijaya Karya (Wika). It is another state-owned construction company. Its president, Tumiyana, said that the company has joined a project to build a 99 km toll road connecting Balikpapan and Samarinda. The toll road will be open in October. Besides, it also built the Balikpapan airport and a power plant in another part of East Kalimantan
