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Industrial land has more prospects in 2017

Kamis, 10 November 2016 / 12:43 WIB

Industrial land has more prospects in 2017

JAKARTA. The industrial land entrepreneurs are optimistic that industrial land sales in 2017 will be better than this year. Based on research by Colliers International, the sales of industrial land in the Greater Jakarta (Jabodetabek) area from January to September 2016 reached 107.41 hectares (ha), or only 30% of the total industrial land sales in 2015 that reached 347.5 ha.

According to Director of PT Puradelta Lestari Tbk Tondy Swasto, industrial land sales next year could raise from this year, as the effect of government policies may began to be seen in the next year. "Economic growth could be better, as a result of, for an example, tax amnesty," he told KONTAN, Wednesday (9/11).

Tondy expected that the company it could sell at least 100 hectares of industrial lands next year. This subsidiary of Sinar Mas Land has been exploring the sales of the lands since the beginning of the year. This is not included in the other explorations conducted by company on the new investors.

Unfortunately, Tondy did not specify the prospective buyers of Puradelta’s land. But clearly, they are not from the automotive group, while usually most of the buyers of Greenland International Industrial Center (managed by the company) are from the automotive sector.

In fact, the sales of Puradelta industrial lands are fairly decent during this year, since it is able to sell about 52 ha of industrial land. But this result is still lower than the 2015 period, which could reach 90 ha.

PT Modernland Cikande is also as optimistic as Puradelta, on the grounds that the Cikande toll gate on the Tangerang-Merak toll road lane will operate in 2017. “To date, the construction process of the toll gate is nearing 90% to completion,” said Director of Modernland Cikande Pascall Wilson.

As of the early of November, Moderland has booked a 16 ha of land sales. Currently, this Modernland Realty subsidiary is still exploring the sales of 6 ha of land to investors of food processing and pharmaceuticals industries.

The company may book the sales in this year. However, the numbers of are still much lower than the target of sales for this year that amounts to 50 ha.

Meanwhile, to date PT Surya Semesta Tbk Internusa (SSIA) has recorded 1.1 ha of land sales. However, this is still far from the target of sales for this year that amounts to 30 ha.

The low sales of SSIA was caused by the sluggish economic condition, which led the investors to refrain from expanding their business. Besides the sluggish economy, the low sales was also driven by the increasingly land reserves.

Currently Surya Semesta does not have land in large blocks to be offered to investors. The developer still has about 130 ha of land in Karawang, but not in one block, while investors prefer a large numbers of land at one point.

Investor Relations at Surya Semesta Internusa Erlin Budiman said that the land condition in Karawang is only match for investors, who want to have small pieces of land. However, he is optimistic that industrial land sales could be better than this year.

Although expected positive prospects, Surya Semesta, Modernland Cikande, and Puradelta Lestari have not yet set sales target for 2017.

(Muhammad Farid/Translator)

Reporter: Dina Mirayanti Hutauruk
Editor: Barratut Taqiyyah Rafie

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