Property Firm Ciputra to Build Houses, Hotel in Indonesia's New Capital

CORPORATE ACTION - JAKARTA. Indonesian property firm Ciputra Development Tbk plans to build a housing estate, a hotel and a golf course in what would be the country's new capital city on Borneo island, a company director said on Monday.

Southeast Asia's largest economy is currently building its new capital city, Nusantara, from scratch to replace an overcrowded Jakarta. But Indonesia has had trouble attracting foreign investors into the $32-billion project, despite issuing incentives and promoting it at international events.

Ciputra is currently awaiting the government's decision on land prices and expects to conduct a feasibility study later this year, said a company director Budiarsa Sastrawinata, without disclosing the planned investment amount.

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The firm will develop a convention centre alongside residential areas, a hotel and a golf course over an area of up to 300 hectares (741 acres).

The government plans to move 16,000 civil servants, police and military officers to Nusantara starting next year. Construction of a presidential palace, government offices and some apartments is already underway.

Indonesian hospital operator Medikaloka Hermina last month announced a plan to build a hospital in Nusantara, among the first private sector investments in the new capital city.