Development in Batam to target wealthy Indonesians, foreigners

Indonesian property developer Sinar Mas Land will start developing residences and integrated mixed-use areas on 228 hectares with initial investment of 4 trillion rupiah (Bt10.2 billion) in the middle of next year, an executive has said.

Ishak Chandra, Sinar Mas Land chief executive for strategic development and service, said the project, Nuvasa Bay, was the firm’s first development in Indonesia targeting wealthy people from Indonesia, Malaysia and Singapore.

"Nuvasa Bay carries the concept of a residence that is surrounded by a golf course and beaches," Ishak said during the launch of the project at the Palm Springs Golf and Country Club on the island of Batam this weekend.

Ishak said the project was also targeting expatriates in Batam. According to official data, there are 6,000 expatriates in the island city near Singapore.

"In the last three years, Batam has become among Indonesian cities with most stable property growth. We are optimistic [about achieving the target] with the current premium property price of more than 4 billion rupiah," he said.

He said 1,100 houses and 4,000 apartments would be built in Nuvasa Bay, half of which would be completed in the next five years with investment of 4 trillion rupiah. Overall, he said, the project would cost 9 trillion rupiah and was expected to be fully completed in 15 years.

"We hope that our regulations on foreign property ownership in Indonesia will not result in prices being set too high. Setting the price within a range of between 3 billion and 4 billion rupiah will be affordable, similar to prices in Malaysia. This will be good for the prospect of property growth in our country."

The project is the third Sinar Mas Land project in Batam after the Palm Springs Golf course was inaugurated by president Suharto in 1995 and the Duta Mas luxury residence compound in Batam Centre.

Around 110 of the 228 hectares of land on which the Nuvasa Bay compound will be built is currently taken up by a 27-hole golf course. It will be reduced to 40 hectares and 18 holes to make way for mixed-use development, while around 100 hectares will be maintained for forests and mangroves.

Steven Japari, Palm Springs Golf and Country Club general manager, said the golf course, which has been in operation for 20 years, welcomed 3,500 golfers every month, 500 of whom were local.