Wibowo Muljono, President Director at Astra Land Indonesia, said the Astra Group has been active in Indonesia's property sector since 2013 and in an attempt to strengthen its presence in this sector it formed a joint venture - named Brahmayasa Bahtera - with Hongkong Land in October 2016. Astra holds a 60 percent stake in this joint venture, while Hongkong Land owns the remaining 40 percent. Both companies are affiliates of British conglomerate Jardine Matheson Holdings.

Similar to the automotive industry where Astra has a lucrative partnership with Toyota, Astra selected Hongkong Land because this company is regarded a valuable and strategic partner to conquer the property sector. Arumaya is Brahmayasa Bahtera's third project after the Andamaya Residence on Sudirman Road in Central Jakarta, and the Asya residential complex in Cakung, East Jakarta.

Muljono said Brahmayasa Bahtera will launch the Arumaya project in February 2018. The project will consist of 262 residential units in a 22-story apartment built on a 2.6-hectares sized plot of land next to the busy T.B. Simatupang road in South Jakarta. There will be three types of units: (1) one bedroom; 55 m2, (2) two bedrooms; 82 m2, and (3) three bedrooms; 119 m2. The price is expected to be in the range of IDR 35 - 41 million (approx. USD $2,835) per square meter.

Considering the Indonesian government is eager to push for infrastructure development (the project is located near two future MRT stations: Lebak Bulus and Fatmawati), the property sector of Indonesia is finally showing some encouraging signs (after having stagnated since 2013), and the macro-economy of Indonesia is improving, Astra regards it the right moment now to launch this luxurious property project. The project is scheduled to be completed by 2022.

Muljono added that the joint venture may launch two more property projects this year (both in the Jakarta region). In total, Astra set aside a combined IDR 3.7 trillion (approx. USD $276 million) for the three projects.

Shares of Astra International rose 1.46 percent to IDR 8,700 a piece on Friday (02/02). So far this year the company's shares have climbed 4.82 percent. Astra International is one of the top companies in terms of market capitalization on the Indonesia Stock Exchange.

Stock Quote Astra International - ASII: