Lippo to build $20b Meikarta industrial center, bill as ‘Shenzen of Indonesia’

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Lippo to build $20b Meikarta industrial center, bill as ‘Shenzen of Indonesia’

Indonesia’s conglomerate Lippo Group announced on May 4 it plans to build an US$ 21 billion industrial center outside Jakarta, dubbed ‘Meikarta’, targeting the electronic and automotive industries, Reuters reported.

The Meikarta project will include partnerships with Japan’s Toyota, Mitsubishi Group, and Sanko Soflan Holdings Co Ltd. The project is billed as ‘the Shenzen of Indonesia’, referring to China’s wealthiest and largest manufacturing hubs.

The Meikarta industrial zone will be built on a 22 million-square-meter area located in Cikarang, West Java, a corridor connecting Jakarta with Bandung. The area is bounded by industrial estates where millions of vehicles and electronic products are manufactured.

Lippo Group also plans to build more than 100 skyscrapers, each consisting of 35 to 46 floors, whose constructions have been started since January last year. The group targets 50 building among them are ready in December next year.

The fist stage of project will also see development of around 250,000 homes with five-star hotels and shopping malls.

The project’s optimism hinged on a number of large infrastructure projects connecting Jakarta and Cikampek, including Jakarta-Bandung fast train project, Jakarta-Cikampek overpass toll road plan, Panimban Port development plan in Subang as well as expansion plan of Kertajati Airport in Majalengka.

Lippo will fund the project from its own capital, loans, and pre-sales of properties in the project. The ambitious project is expected to employ more than 85,000 workers.

When the Meikarta project is completed, the new city is expected to absorb between 6 and 8 million workers and help to ease pressures in Jakarta which has seen severe traffic jams and congestions.

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