Jakarta. Brewin Mesa Sutera, an Indonesian-incorporated joint venture owned by Singaporean investors, awarded China State Construction Overseas Development Shanghai a contract to begin construction on "The Lana" apartment project located in Alam Sutera township in Tangerang, Banten.
Brewin Mesa Sutera is controlled by Singapore developer Brewin Mesa and its partner Shenning Emerging Asia Real Estate Fund.
The Singaporean Brewin Mesa is itself controlled by two real estate families, the Cheng family, who controls Wing Tai Asia, and the Kwee family, which manages the Pontiac Land Group.
Meanwhile, the China State Construction Overseas Development Shanghai (Indonesia) is a subsidiary of China State Construction Engineering (CSC), the world's largest construction company and which is ranked 24th on the Fortune Global 500.
The luxury apartment project in Alam Sutera is worth Rp 1.3 trillion ($96 million) for its total development cost.
"In selecting CSC to build our first project in Jakarta, we recognize their extensive experience in building luxury high rise buildings across the world and their superior construction capabilities," Bill Cheng, president director of Brewin Mesa Sutera, told reporters at a signing ceremony for the contract awarding in Jakarta on Thursday (09/11).
"They are not only the No. 1 construction company in the world, but have also completed the most number of super-tall buildings as well as numerous luxury hotels and apartment project across Asia."
The Lana, located near Puri Indah, West Jakarta, will consist of two 38 store towers and will offer 560 units of apartments. The project boasts a 56,000 square meter merchant area and is targeted for the high-end market segment, both for investors and end-users.
Cheng said units will be available to the public by the first half of 2020.
Chinese Builders Upbeat About Indonesia's Economy
Li Jie, executive director of China State Construction Overseas Development Shanghai (Indonesia), conveyed CSC's confidence in the archipelago nation. He said that with a population of more thaan 250 million, nearly 50 percent of whom are below the age of 30, the country is expected to benefit from a strong demographic bonus that can help spur economic growth over the next few years.
"As the population grows, there will be greater need for buildings of all types, from homes to office buildings to shopping malls. Indonesia’s government has also been very active in attracting foreign investment, as well as spurring investment into infrastructure projects," he said, adding that "CSC would like to be part of this opportunity, and since two years ago, have entered the Indonesian market with the intention to build our business here for the long term."
He said the group's strategy is to "localize as much as possible."
"We have sent senior employees to Indonesia to be based here for the long term, to even pick up the Indonesian language and become accustomed to Indonesia culture. As much as possible, the foremen and construction workers we use will be local Indonesians, which we hope will contribute to job growth in the economy," Jie said.
In the building sector, CSC is known for skyscrapers all over the world, as well as for luxury hotel and apartment projects. In Indonesia, the company is building The Signature Tower, which will become the tallest building in Southeast Asia.