29-11-2024 (JAKARTA) One of Indonesia’s most prominent business figures has revealed ambitious plans to transform a northern district of Jakarta into a world-class destination, complete with port facilities and potentially a Formula One racing circuit.
Sugianto “Aguan” Kusuma, president director of PT Pantai Indah Kapuk Dua (PIK 2), disclosed ongoing negotiations with Chinese and Singaporean partners for a major port development, though specific details remain under wraps. The project’s anticipated capital expenditure for the coming year could exceed 5 trillion rupiah.
The development, situated just 15 minutes from Jakarta’s international airport, represents a bold vision for urban regeneration in an area that was previously considered underdeveloped. “We’re taking a measured approach to this extensive development,” Kusuma explained at a recent investors’ briefing. “This is a multi-generational project that will establish a new foundation for Jakarta’s future.”
Despite challenging market conditions across Asia’s property sector, where numerous developments struggle with occupancy rates and debt obligations, PIK 2 has demonstrated remarkable success. The project has witnessed a threefold increase in sales over the past year, with its stock value surging nearly 70,000% since 2021, establishing it as Indonesia’s top-performing property stock.
The venture, a collaboration with Indonesian magnate Anthoni Salim – ranked sixth on Bloomberg’s national wealth index – aims to revolutionise Jakarta’s tourism appeal. Current development plans include what will be Indonesia’s largest convention centre, scheduled for completion in September 2025, alongside a luxury five-star hotel.
Perhaps most ambitiously, Kusuma envisions hosting Formula One races, positioning Jakarta as a competitor to Singapore in the international motorsport calendar. However, regional competition remains fierce, with Thailand also vying for F1 hosting rights.
“Jakarta’s tourist potential remains largely untapped,” Kusuma observed. “PIK 2 aims to create a comprehensive destination that offers both leisure and business travellers compelling reasons to extend their stays beyond traditional hotspots like Bali.”
The development currently features exclusive residential areas, dining establishments, and multiple golf courses, with a central business district under construction. Market analysts note that while the project’s scale is unprecedented for Jakarta, its early success suggests strong potential for sustained growth.
