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China invests in Jakarta's property development

Reporter: Li Sien 丨 CCTV.com

06-23-2016 15:06 BJT

Infrastructure continues to be a growing concern in Indonesia, a country with more than 2 hundred 50 million people. Chinese investors are hoping to change that. Foreign investment from china grew five-fold in the first quarter of 2016, opening up many job opportunities for locals.

Amrit Lakhiani is constantly looking for ways to improve his business. As a real estate developer, he relies heavily on the growth of Indonesia's property industry. But it comes with challenges.

"This market is fairly competitive there's large developers that have been around for 40-50 years and there's also lots of new developers in the medium and small sectors as well. Pretty much any city u go to whether it's Jakarta or anywhere else, there's developers popping up so that's one of the challenges," he said.  

One of those developers is China Harbour Indonesia. Over the past decade, the company has focused on improving various aspects of Indonesia's infrastructure. Thermal power plants in Java, toll roads in north Sumatra, and even port facilities, just to name a few.

Now, their latest project focuses on building a solid future in the property industry.

Shen Chao, president director of China Harbour Indonisia, said, "We plan to build about 30 towers, each about 30 floors, we plan to build this project in about 10 years period. This project is mainly for the middle class people. The total investment will be about 1 billion US dollars." He said the project will eventually expand to other cities in East Java and North Sumatra.

Despite last year's slowing economy, Jakarta's luxury property market is growing faster than ever, attracting many foreign investors. And it doesn't only benefit the developers and buyers. It's also vital for the country's economy.

"The investment in property sector will also lead to capital accumulation which is good for Indonesia as a developing country. I think construction activity is still the main driver of the economic growth. There is a positive correlation with investment in property sector and economic growth in Indonesia," said Josua Pardede, an economist from Bank Permata.

The project helps to pave a smooth road between China and Indonesia, bringing President Xi Jinping's One Belt One Road Initiative closer to reality.

"Like president Xi, president Joko Widodo had a bold vision when he took office. To build seaports, airports and improve agriculture by 2019. And with all of these new form foreign investments opening up, Indonesia can finally prove to be a hub for urban infrastructure," said CCTV reporter Silkina Ahluwalia from Jakarta, Indonesia.

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