Indonesian tycoon eyes theme park, F1 in $21.5b North Jakarta project

Singapore – A port, a theme park and maybe even a Formula One race – those are just some of the things that one of Indonesia’s richest men believes can be hosted at his ambitious real estate project in North Jakarta.

Mr Sugianto Kusuma, president director and owner of Pantai Indah Kapuk Dua, is in talks with partners from China and Singapore to build a port, but declined to reveal more details.

His company may need in excess of 5 trillion rupiah (S$420 million) in capital expenditure in 2025 to fulfil its expansion plans, he said.

Better known as Aguan locally, Mr Kusuma has an ambitious vision to develop the town called Pantai Indah Kapuk Dua, located in North Jakarta.

The property project, known locally as PIK 2 and now worth around US$16 billion (S$21.5 billion) in market capitalisation, is a 15-minute car ride from the capital’s international airport. 

“It’s going to require huge spending, but we are not building everything in one go,” said Mr Kusuma, who also runs Agung Sedayu Group, the holding company of Pantai Indah Kapuk Dua. “This isn’t a short-term project. It’s not going to be built just by me, but future generations can continue it. But we want to lay down a foundation first.”

Pantai Indah Kapuk Dua shares jumped as much as 3.5 per cent on Nov 29 following Mr Kusuma’s comments, keeping the company on track to be the best-performing property stock in Indonesia for the fourth consecutive year. The broader Jakarta Composite Index declined 1.2 per cent, extending its retreat since its September peak to 10 per cent.

Mr Kusuma’s company expansion comes at a time when many property developers in Asia are struggling to fill massive property projects that turn into ghost towns and facing challenges repaying debt.

Indonesia’s middle class is also seeing shrinking purchasing power. 

While Mr Kusuma stressed that the project’s expansion depended on global economic conditions, he might just pull it off.

Pantai Indah Kapuk Dua’s initial wave of apartments and houses has been snapped up, sales tripled in 2023 and the company’s stock has soared close to 70,000 per cent since 2021 to become the nation’s best performing property stock.

The development of the project is a joint venture with another Indonesian magnate, Mr Anthoni Salim, the country’s sixth-richest person, according to the Bloomberg’s billionaire index.

Both men are part of what locals call the “Nine Dragons”, an exclusive group of super-wealthy and influential tycoons.

F1 ambitions

Part of the goal of creating PIK 2, which was formerly a slum area, is to help promote tourism in Jakarta. The town currently is made up largely of gated neighbourhoods, restaurants and multiple golf courses. A central business district comprising office buildings is being constructed.

The expansion plans include the country’s largest convention centre, which is scheduled to be completed in September 2025, and a global five-star hotel. 

The tycoon also harbours aspirations of building a racetrack on the property, which would allow it to host international race events in the future, similar to the F1 races in Singapore. 

While F1 organisers are considering the possibility of adding another Asian race to the already-packed schedule, Indonesia would face tough competition from other cities in the region.

In May, Thailand’s Prime Minister met with F1 officials to discuss a race in Bangkok.

Still, Mr Kusuma’s focus is on attracting more foreign tourists, most of whom prefer going to Bali, the tropical island known for its yoga retreats and surfing schools. 

“Why don’t they spend a longer time in Jakarta? Because it doesn’t have much to offer the tourists. There’s nothing much for sightseeing,” he said.

“Tourists want to feel relaxed, they want to learn the history and culture of a place. Over at PIK 2, we will create everything they need.” BLOOMBERG