Indonesia has landed some big-ticket overseas investments in the real estate and retail sectors. United Arab Emirates-based hypermarket chain Lulu Group, has opened its first hypermarket in East Jakarta while Singapore-based investment company, Northcliff Capital has agreed to invest $200 million in the country.
Lulu to invest $500m in Indonesia, opens first store
The Lulu Store Hypermarket – which recently opened its first store in Cakung, East Jakarta – plans to open 15 large format retail outets by the end of next year with an initial investment of $300 million. The group is looking at investing up to $500 million by 2021.
The store (in east Jakarta) is a prelude to the group’s $500-million proposed investment in Indonesia until 2021, said Ari Dwipayana, a member of President Joko Widodo’s communication team.
Widodo said, at the opening of the hypermarket, Lulu Group’s early inroads into the Indonesian market would also make way for export of Indonesian products to the Middle-East. Lulu Group has a strong presence in the Middle East and India with as many as 165 outlets. It operates in Indonesia through a local unit, Lulu Group Retail.
Singapore’s Northcliff invests $200m in Ratu Prabu projects
Northcliff Capital, a Singapore-based investment company, has agreed to invest $200 million in property and oil & gas projects managed by PT Ratu Prabu Energi Tbk (ARTI), a locally-listed energy firm.
Ronny Tome, managing partner, Northcliff Capital, said, the investment company was also looking to work together with Ratu Prabu.
“We are confident that investing in the property sector—specifically the Ratu Prabu 1 and 2 office towers in TB Simatupang—is a strategic step for the company,” Erry Sulistio, Northcliff Capital chief executive officer, said.
As a result of the declining trend in oil and gas prices, the energy company forayed into the property space 10 years ago with the Ratu Prabu projects in South Jakarta.
Ratu Prabu booked Rp 225 billion in revenue last year, almost half of which comes from the property vertical, which helped the energy company book Rp 19 billion in net income.