BPJS Ketenagakerjaan Signed MoU with Syailendra Group and Samih Sawiris, Chairman of Orascom Housing Communities to Develop an Integrated Affordable Town for Indonesia’s Low-Income Earners
Jakarta, 21 Oktober 2015 — BPJS Ketenagakerjaan together with Syailendra Housing Communities Asia’s strategic stakeholder Mr. Samih Sawiris, Chairman of Orascom Housing Communities, and Syailendra Capital today signed a Memorandum of Understanding (MoU) to jointly develop an integrated affordable town for Indonesia’s low-income earners on a 200 hectare land plot in West Java.
The memorandum was signed by Hoyt G. Masassya, CEO of BPJS Ketenagakerjaan, Samih Sawiris and Jos Parengkuan, CEO of Syailendra Capital on behalf of Syailendra Group, at the Financial Hall, Jakarta.
Speaking at the signing ceremony, Jos Parengkuan said that the project aims to build not only affordable housing for the low-income earners, but also provide better-quality living in an integrated, independent town that is environmentally friendly and supported by a wide array of facilities including school, hospital, sports, worship places, water treatment, waste management and transportation.
The project, estimated to cost around USD200-250 million, will involve the development of low-rise residential buildings that could house up to 30,000 families. Syailendra Capital intends to manage local participation in to the project through a private equity fund structure. ‘This will be the first private equity fund structure in Indonesia that invests in residential housing project with such a scale,” Jos said.
Elvyn G. Masassya said that he is very excited about the project as he believes it will create added value for both the society and the economy. “We recognize the very large number of housing backlogs in Indonesia including those needed by our members, and as such we have been actively looking into ways to help accelerate the realization of the government’s One Million Housing Program. Many developers have built affordable housing units here, but none has come up with a unique, integrated concept like this one. To support the project further, we plan to work together with a number of banks to provide our members ease of mortgage financing at a subsidized rate,” he said.
Samih Sawiris added that with the sharp rise in land prices in recent years, it will be increasingly difficult for the estimated 34 million low-income earners in Indonesia to buy houses for their families. “Currently there are many integrated towns in Indonesia, yet none is affordable for the low-income earners. With this project, we hope to offer the best solution for them to have a much better quality of living at affordable prices, and to leave valuable assets for their next generation. The capital city of Jakarta will also benefit indirectly from reduced traffic congestion, and we hope this will create a multiplier effect for the economy as a whole,” Samih said.
With more than 16 years of experience and track record, Orascom Housing Communities is one of the world’s leading property developers for affordable housing. Among its portfolio of integrated affordable towns are Haram City in Cairo, which was built in 2007, and Qena Gardens in the southern area of Egypt which was built in 2010.
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