Emaar signs $600m project in Indonesia

(SUPPLIED)   

Emaar Properties and Bali Tourism Development Corporation (BTDC) have signed a memorandum of understanding for a $600 million (Dh2.2 billion) mega-tourism and mixed-use development project in Lombok in Indonesia.

The flagship Lombok project is envisaged as a world-class residential and resort community sprawling more than 1,175 hectares. Master-planning for the development will begin in April. Set on the pristine Kuta and Tanjung beaches, the project will be environmentally-friendly and integrate residential, leisure and hospitality zones.

The joint venture will also explore further growth opportunities in Indonesia. The agreement was signed in the presence of Indonesian President Susilo Bambang Yudhoyono, who arrived in Dubai on Tuesday.He urged UAE investors yesterday to tap various business opportunities in the Southeast Asian state.

Yudhoyono assured the UAE business community that Indonesia’s political and economic scenario is conducive to foreign investments, especially after the implementation of a simplified foreign direct investment policy in 2007.

I Made Mandra, President Director of BTDC, told Emirates Business that the project will position Lombok, an island east of Bali, as one of the prime tourist and leisure destination in Indonesia.“The initial stage, [which will take about eight months] will involve the creation of a master plan and then a feasibility study.

The BTDC has been brought into the project because of our expertise in developing Bali as an island-resort,” he said. Mohamed Ali Alabbar, Chairman of Emaar, said the joint venture would lend momentum to their expansion plans for Indonesia, an emerging market in Southeast Asia.

In an announcement made in May 2007, Emaar said the Lombok project will place Indonesia as its 16th global market. When developed, the new island-resort will feature a seven-kilometre natural waterfront, luxury residences and five-star hospitality chains that will allow leisure activities such as diving, snorkelling, hiking and surfing.

A number of other UAE-based companies have also started their venture in Indonesia. Etisalat in December 2007 bought a 16 per cent stake in Indonesian telecom company PT Excelcomindo Pratama TBK for $438 million (Dh1.6 billion).

Dubai Drydocks World has expressed its interest in investing $1.05bn for six offshore oil explorations in Riau Islands Province’s Batam island, 20km off the coast of Singapore.

Fabtech International is also eyeing a $500m shipbuilding project in Batam island. Aside from Emaar, Indonesia has attracted other UAE property developers such as Ithmaar Development and Limitless Dubai for multi-million dirham residential and commercial real estate developments.

Meanwhile, Adnan Ahmed Yousif, President and Chief Executive of the Bahrain-based Albaraka Banking Group, told Emirates Business that they are considering investing around $50m to $100m in the Southeast Asian state’s banking sector.

RMMI commits $1.5m investment RAK Minerals and Metals Investments (RMMI), which is owned by Ras Al Khaimah Government, has committed $1.5 billion (Dh5.5bn) of investment in Indonesia.

Ras Al Khaimah Investment Authority (Rakia) and RMMI yesterday made a high-level presentation on the emirate’s minerals and metals strategy to the visiting Indonesian president, during which Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, was present.

RMMI has signed an agreement with the Government of South Sumatra Province, Indonesia, for “co-operation on Tanjung Api-Api Port, Industrial City, Industrial Parks with other supporting facilities in the Banyuasin Regency in the South Sumatra Province”.

The memorandum of understanding envisages building an industrial park for metal refining, metal-based fabrication industries, smelting and bio-technology parks, palm, rubber and other agro-based industries, captive power plants and supporting infrastructure.

Ras Al Khaimah, as part of expanding its footprints, has also announced its plans to invest about $250 million in the Democratic Republic of Congo.