Bakrieland expands to infrastructure projects

The Jakarta Post, Jakarta

Publicly listed PT Bakrieland Development is expanding to infrastructure projects, acquiring a 100 percent stake in PT Semesta Marga Raya (SMR) -- the developer of the 35-kilometer Kanci-Pejagalan turnpike.

Bakrieland Development president director Hiramsyah S. Thaib said in a media statement over the weekend that the acquisition, currently being conducted by a subsidiary, would be finalized early March at a cost of Rp 690 billion.

While the company's core business will remain in the property sector, Hiramsyah said, it is now entering the lucrative infrastructure sector -- focusing on toll roads and monorails.

"In the future, we predict the infrastructure sector will be able to contribute between 35 and 40 percent of the company's total revenue," he said.

At Oct. 31 last year, the company's unaudited net profits had reached Rp 88.8 billion, on revenue of Rp 547.7 billion. January-October 2007 profits surpassed 2006's full-year profits of Rp 67.8 billion.

Commenting on the Kanci-Pejagalan project (part of the massive Trans Java scheme), Hiramsyah said SMR had completed all the land-acquisition needed and would soon begin construction.

Bank Rakyat Indonesia and Bank Negara Indonesia have expressed interest in financing up to 70 percent of the project, estimated to cost around Rp 2.3 trillion, he said.

In addition to city residential projects, the company also develops hotels and resorts such as the Legian Nirwana Suites & Residences in Bali.