JAKARTA. As a property developer, PT Indonesian Paradise Property Tbk (INPP) has yet to show its interest in participating in the hype of Nusantara Capital City (IKN).

According to the Press Conference of Paradise Indonesia’s 2024 Performance yesterday (29/1), the company is still focusing on completing 4 existing projects, 3 of which are located in Java Island, while Hyatt Place in Makassar is prepared to be launched next February.

Between Balikpapan and Antasari

In March 2022, INPP, now widely known as Paradise Indonesia, announced its plan to establish a CBD area in Balikpapan.

However, Anthony Prabowo Susilo, CEO of INPP, admitted to have postponed said CBD project, which was supposed to kick off in late 2022. “The reason is because we had a better deal, which was Antasari project take-over,” he revealed.

After last year’s topping-off, Antasari Place is planned to be handed over in next December. However, the management also said that there has been a plan for tower 2 expansion of Antasari Place in 2025.

“However, we would like to do something different from tower 1. So, we still put it under review,” added Surina, CFO of INPP.

On the other hand, according to Susilo’s explanation, INPP seems ready to initiate market expansion to Kalimantan.

“I have stretched out our development team’s muscle in Paradise Indonesia to prepare for one, even two, developments that will be begun this year. One of them includes the activation of our landbank in Balikpapan; we start conceptualising,” Susilo mentioned.

Despite the plan being conditional, Susilo further reaffirmed that the company has acquired adequate landbank to work on.

“The land is 8 hectares. We start from the first phase, the simplest is to probably build a hotel,” said Susilo. Surina also mentioned that the allocated investment budget is approximately IDR 350 billion for Phase I.

Property Trend in IKN

Despite it being a property company, INPP seems not to have made any movements in IKN. Susilo then implied that the project types in IKN have yet to be aligned with INPP’s strength.

“Paradise is a high-rise, urban, mixed-use developer. We always build multi-tower, multi-level buildings,” Susilo mentioned. The focus of the property developed by the company often accommodates high-density cities.

According to Susilo, the township development and urban planning ideally starts from low-density property, such as landed house, before expanding into medium and high-density.

“Therefore, the government has actually made the right move to pair up with partners in IKN that are mostly engaged in the residential industry, through landed house, as well as low-density commercial development, such as shophouses, etc,” he added.

Susilo felt that building a high-rise building in the middle of a low-density city will require a massive level of dedication.

“As our specialisation lies in the urban high-rise development, it might not fit our forte, yet,” claimed Susilo.

“But this project is close to IKN; just across the city,” said Surina and Susilo jokingly.

INPP’s Focus in Java and the Capex

On the same occasion, Susilo admitted that INPP is now still focusing on completing several ongoing projects. Aside from Hyatt Place, the company will work on the construction of extension of 23 Paskal in Bandung, as well as Mall 23 Semarang.

According to Surina, the allocated budget for the extension of 23 Paskal in Bandung is set to approximately IDR 250 billion.

Susilo claimed that the 23 Paskal’s extension is carried out following the increasing demand from tenants and retailers.

“At 23 Paskal, we build lower than the demand. The demand has reached nearly 15,000 net leasable area, but we only provide 8,00 net leasable area,” added Susilo. Therefore, the occupancy rate has reached 100%.

“Our project in Bandung aims to build to meet existing demands. Our project in Semarang also caters to the demand from our retailers, as well,” he added.

INPP is currently working on Mall 23 Semarang, strategically partnering with Bina Nusantara (Binus), since October 23. The project is estimated to be completed in 2025.

“For Semarang, we still have another two years. But now, it has reached 30%, and probably, not long after, it will reach 50% occupancy rate,” said Susilo.

With the long list of existing projects, INPP is allocating capital expenditure (capex) of up to IDR 1 trillion this year. According to Susilo and Surina, the average capex budget of INPP has continuously grown from year to year.

“Prior to 2023, our average capex was only IDR 300 billion. In 2023, it reached IDR 500 billion, while in 2024, the budget is set to IDR 1 trillion,” Susilo explained. (ZH)