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Index of Consumer Confidence Rises in May 2014 Bisnis Indonesia – June 5, 2014

Jakarta – Bank Indonesia notes consumer survey in May 2014 rose and indicated that consumers’ confidence bounced back than the previous month. Consumer Confidence Index in May 2014 reached 116.9,

growing than that in the previous month at 113.9. It is spurred by the healing consumer’s confidence on current economic situation and in the next 6 months.

Inflation in May Reaches 0.16% Bisnis Indonesia – June 2, 2014

Jakarta – Statistics Indonesia notes inflation rate in May 2014 reaches 0.16% and the annual inflation reaches 1.56%. It is lower than that in April 2014 where deflation reached 0.02%, while in May 2013, deflation reached 0.03%.

Foreign Tourists Visit Grows 11% In 2013 Bisnis Indonesia – June 2, 2014

Jakarta – Ministry of Tourism and Creative Economy stated that the number of foreign tourists who visited Indonesia in 2013 grew by 11% compared to the previous year. The number of foreign tourists in 2013 reached 8.8 million people, or 11% higher than the previous year.

Budget Deficit Forecast for 2015 The Jakarta Globe – May 20, 2014

Jakarta – The government forecasts a widening budget deficit next year on rising fuel subsidies, which could pose a problem for the new president amidst a global economic slowdown. The fiscal deficit in 2015

will remain expansive, but measured between 1.7% and 2.5% of gross domestic product.

Gov’t Sets RI’s 2015 Macroeconomic Assumptions The Jakarta Post – May 20, 2014

Jakarta – The government has set some basic macroeconomic assumptions in the state budget plan (RAPBN) for the 2015 fiscal year. The government, Bank Indonesia and the Financial Services Authority (OJK) have predicted that the rupiah will be traded at between 11,500 and 12,000 per U.S. dollar throughout 2015.

Economy

News flash Bi-Weekly Property-related News in Brief Issue #89, Weeks 3 & 4 | May 2014

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Four State-Owned Banks to Finance Sumatra’s Rp10 Trillion Project The Jakarta Post –May 28, 2014

Jakarta – PT Bank Mandiri, PT Bank Rakyat Indonesia (BRI), PT Bank Tabungan Negara (BTN) and PT Bank

Negara Indonesia (BNI) are committed to financing the much anticipated Rp10 trillion (US$860 million) electricity transmission project of 500 kilovolt electricity transmission network in Sumatra.

Five Companies Eye Samarinda Airport The Jakarta Post – May 26, 2014

Jakarta – Five state-owned enterprises (SOEs) have applied to invest in the construction of an airport in Samarinda, East Kalimantan, after initial investor PT Persada Investment backed out of the project. They are PT Wijaya Karya, PT Adikarya, PT Waskita Karya, PT Pembangunan Perumahan and PT Hutama Karya.

N. Sumatra Starts Double-Track Railway Project The Jakarta Post – May 24, 2014

Jakarta – The Transportation Ministry’s Directorate General of Railways has begun work on a double-track railway in North Sumatra, connecting Medan, Aras Kabu and Kuala Namu International Airport in Deli Serdang, at a total cost of Rp3.9 trillion (US$338 million).

Waskita Works On Depok-Antasari Toll Road Construction Package Bisnis Indonesia –May 22, 2014

Jakarta – PT Waskita Karya Tbk will be working on one of construction work section I, Depok-Antasari toll road of Rp485 billion. Depok- Antasari toll road would be built as long as 22 kilometers categorized into two sections. The first section would be from Antasari-Sawangan, and Sawangan-Bojonggede.

AP II Airports to See Tax Increase The Jakarta Post – May 19, 2014

Jakarta – PT Angkasa Pura II increased the passenger service charge (PSC) in three airports to improve its services. The airports are Kualanamu International Airport in North Sumatra, Raja Haji Fisabilillah International Airport in Riau Islands and Sultan Syarif Kasim II International Airport in Riau.

Gov’t Regulates Non-Starred Hotels in New DNI The Jakarta Globe –May 19, 2014

Jakarta – The government has now included non-starred hotels, cafés and bars in the newly revised

negative investment list (DNI) amid increasing foreign direct investment (FDI) in the tourist sector.

General

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Pakuwon Eyes US$150M to Aid Expansion The Jakarta Post – May 31, 2014

Jakarta – Pakuwon Jati is looking to raise Rp1.75 trillion (US$150.5 million) from a rights offering next month, which will be used to finance its expansion plans. It plans to issue 4.81 billion new shares, representing 10 percent of its enlarged capital.

Modernland Reports 21% Profit Hike on Home Sales The Jakarta Globe – May 29, 2014

Jakarta – Modernland Realty has reported a large 21 percent increase in profit in the first quarter of the year. Its net income for the first three months of 2014 was Rp390.2 billion (US$33.6 million), compared with

Rp323 billion the same period last year, while its revenue rose 34 percent to Rp790 billion.

Blacksteel Plans Projects Worth US$300 Million in Indonesia The Jakarta Globe – May 27, 2014

Jakarta – The Blacksteel Group plans to build projects worth US$300 million in various Indonesian cities until 2018. One of the projects that will be developed is Lombok City Center (LCC), a mall in Mataram, Lombok island’s capital. It is currently developing two malls: Ambon City Center (in Maluku province) and Ponorogo City Center (East Java).

Sampoerna, Santika to Build Raja Ampat Resort The Jakarta Globe – May 27, 2014

Jakarta – Sampoerna Group, a diversified holdings company, and event organizer Dyandra Media International are conducting a feasibility study for a resort in Raja Ampat, an ecotourism haven in West Papua. According to the group’s master plan, an integrated development project may require to Rp1 trillion (US$86 million) in investment.

Brooklyn Suite Handover in 2016 Investor Daily – May 23, 2014

Jakarta – PT Waskita Karya Tbk and PT Triniti are targeting Brooklyn Apartment Suite Soho and Office in

Alam Sutra-Tangerang will be handed over by 2016. Brooklyn Suite apartment consists of two towers with 27 stories and 920 units.

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Hilton set to open five more hotels to boost RI presence The Jakarta Post – May 22, 2014

Jakarta – Hilton Worldwide is set to open five new hotels with luxury, upscale and midscale classifications

in Indonesia over the next few years, to benefit from the growing business- and leisure-travel sectors. The US-based hotel chain made a comeback to the capital city this year after opening one of its upscale brands, Double Tree by Hilton, earlier this month.

Duta Pertiwi Sets Aside Rp1 Trillion for Land Acquisition Indonesia Finance Today – May 22, 2014

Jakarta – The land that will be acquired in Duri Pulo reaches one hectare. Duta Pertiwi plans to use the land to develop a superblock project.

New Boutique Hotel Opens in Solo Tempo – May 22, 2014

Solo – Accor has managed to secure a management contract for the Royal Surakarta Heritage in Solo, Central Java. The Royal Surakarta Heritage Solo has become a new member of the MGallery Collection, a group of boutique hotels.

MAP Slices Up Pizza Franchise with Everstone The Jakarta Globe – May 21, 2014

Jakarta – Mitra Adiperkasa will partner with Singaporean private equity firm Everstone Capital, to manage its Domino’s Pizza franchise. It announced that it will share ownership of the restaurant chain by maintaining 49 percent of its stake. It is also actively communicating with other equity firms for a similar

deal for Burger King.

Paramount Land Launch Omaha Village 2 Berita Satu – May 21, 2014

Jakarta – Paramount Land launch Omaha Village with 160 units of landed house and Rp 250 billion of investment. The cluster is developed in 2 hectare of land. Each unit has 60-90 sqm land area and 80 to 120 sqm of building area with price range from Rp 1.18 billion to Rp 1.86 billion.

Pusako Eyes US$56m Deal With Malaysia Hotel Chain The Jakarta Globe – May 21, 2014

Jakarta – Pusako Tarinka is planning a Rp 635.5 billion ($55.7 million) deal Tune Hotels operator. The Indonesian company also aims to nearly triple its hotel rooms to 3,000, with most of the expansion in Jakarta and other major cities in Southeast Asia’s largest economy.

News flash

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Megapolitan Topping Off Cinere Bellevue Suites’ Project Investor Daily – May 21, 2014

Jakarta – PT Megapolitan Development Tbk did topping off ceremony. The project is developed on 16,772 sq-m with 100,000 sq-m floor area. The project consists of 33,020 sq-m of apartment, 56,907 sq-m citywalk

and in-building car park.

MGM Land Focusing on the Dome and Ginza District Development Investor Daily – May 19, 2014

Jakarta – MGM Land is focusing on two megaprojects in CBD Balikpapan-East Kalimantan. The first phase of the project will be completed in 2015 worth Rp2 trillion. The first phase consists of mall, entertainment, hotel and office space.

PP Properti Develop Grand Kamala Lagoon Investor Daily – May 19, 2014

Jakarta – PT Pembangunan Perumahan Tbk through PT PP Propertindo SPV build Grand Kumala Lagoon, a mix-used development in Bekasi worth Rp20 trillion. The project is situated on 25 hectares of land and will be developed in 11 years.

Sinar Mas Plans to Raise US$800m for Expansion from Bond Sales The Jakarta Globe – May 17, 2014

Jakarta – Sinar Mas Land plans to raise S$1 billion (US$800 million) from the sale bonds in the coming years to finance its expansion plans in Indonesia. Sinar Mas Land has appointed Overseas Chinese Banking Corporation (OCBC) and UBS to help manage the debt sale. Its revenue fell by 43.3% to S$240

million in the first quarter of this year from a year ago, while net income fell 46.6% to S$47 million.

Starwood Hotels & Resorts to Debut Four Points by Sheraton Hotel in Indonesia Financial – May 16, 2014

Makassar – Starwood hotels & Resorts Worldwide's fast-growing Four Points by Sheraton brand will debut in Indonesia. Developed by IMB Group, Four Points by Sheraton Makassar is scheduled to open by May 2015. It will feature two towers with a total of 261 guestrooms.

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