Sumitomo Forestry to join housing project in Indonesia's Makassar

© Kyodo News

Japanese housing and real estate developer Sumitomo Forestry Co. will engage in a large-scale housing project in Makassar, Indonesia, in a tie-up with a pair of local industrial peers.

Sumitomo Forestry said it has teamed up with PT. Summarecon Agung Tbk and PT. Mutiara Properti Cemerlang for the $84 million project, in which 500 two-story units are scheduled to go on sale in the first quarter of 2023 for delivery through 2029.

The houses will be built on a land plot of about 140,000 square meters and have eco-friendly features such as building materials with limited energy loss as well as effective ventilation and sunlight control. Sales prices have yet to be disclosed.

Sumitomo Forestry is the first foreign business to participate in the Summarecon Mutiara Makassar project, which is aimed at alleviating the density of population in the biggest city on Sulawesi Island and the capital of South Sulawesi Province.

The project involving the Tokyo-based company is part of a larger housing scheme in Makassar, whose economic zone has a population of nearly 3 million. The segment in question is located 10 minutes by car from Sultan Hasanuddin International Airport and 15 minutes from the city's main urban area.

A subsidiary of Sumitomo Forestry, PT. Sumitomo Forestry Indonesia, will own a 49 percent stake in a joint venture for the project with the rest to be held by a Summarecon-Mutiara venture.

It is Sumitomo Forestry's third housing project in Indonesia and first with eco-friendly orientation in Southeast Asia. The company has engaged in projects in Bekasi, West Java Province, and Jakarta.

Sumitomo sees Asia as a third pillar of its overseas housing and real estate operations and plans to push ahead with its active investment strategy for the Indonesian market, where its engagement has continued for more than 50 years. (NNA/Kyodo)