Indonesian property developer PT MNC Land Tbk (KPIG) is looking at investing $1 billion in setting up a mega theme park-cum-resort project in Lido, West Java.
The company has signed an agreement with China’s Metallurgical Corporation (MCC) Group, which has bagged the $500-million engineering, procurement and construction (EPC) services contract.
Chinese lenders including Chinese Export and Credit Insurance Corporation have agreed to provide 85 per cent of the construction investment. They have also expressed commitment to finance the project for up to 15 years.
The project, dubbed as the first world-class theme park in the country, features two hotels and an entertainment precinct. It is part of MNC Land’s broader plan to develop a groundbreaking new 3,000-hectare lifestyle hub.
CEO and founder of MNC Group Hary Tanoesoedibjo said, he had chosen MCC to be a partner for its reputation in building two of the largest theme parks in Asia. No other regional main contractor can match the experience, he added.
“MCC has built the $5 billion Shanghai Disneyland project. That alone can already speak for MCC’s reputation,” he said.
MCC is a Chinese state-owned firm headquartered in Beijing. MCC and its unit China JINGYE Engineering Corporation Limited have been involved in the structural design, construction and project management of some of the biggest landmark projects in the country.
It has also built notable theme parks around the world, including Shanghai Disneyland and Universal Studios Singapore.
Tanoesoedibjo went on to assure that the partnership will strengthen bilateral relations, as well as increase investment in economic development between the two countries.
Hundreds of thousand small and medium businesses in the Lido region will flourish, as five to six million visitors are expected to come each year. In terms of commercial value, the project is believed to be the group’s main performance engine.
“Developing Indonesia’s first world-class is a natural extension of our unrivaled strength as Southeast Asia’s leading media network. It allows us to leverage synergies in content creation and distribution across the group,” Tanoesoedibjo said.
Earlier this year, Hollywood-based design firm Opak Creative commenced schematic design works on the 55-hectare park located in the natural setting of Lido. Envisioned as an immersive world of magic and adventure, the park will feature thrilling rides and shows that bring to life original stories woven with elements of Indonesia’s rich cultural heritage.
Other properties owned by MNC Land are the Westin Convention and Resort Hotel in Nusa Dua, Nirwana Resort, a 108-hectare hotel and golf course in Tabanan, Bali, and significant investment in Plaza Indonesia, Jakarta.
Meanwhile, new properties under development include several office buildings, apartments and hotels, such as the Park Hyatt Hotel in Jakarta and One East Penthouse and Residences Collection in Surabaya.
MNC Land is part of the MNC Group, which was founded in 1989 by Hary Tanoesodibjo. MNC Group’s core businesses include media, financial services, and property.