Better known as Aguan locally, 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 $16 billion in market capitalization, 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 Kusuma who also runs Agung Sedayu Group, the holding company of PT 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.”
Shares of Pantai Indah Kapuk Dua jumped as much as 3.5% on Friday following 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%, extending its retreat since its September peak to 10%.
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 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 last year and the company’s stock has soared close to 70,000% since 2021.
The development of the project is a joint venture with another Indonesian magnate 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.
Formula 1 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 neighborhoods, restaurants and multiple golf courses. A central business district comprising of office buildings is being constructed.
The expansion plans include the country’s largest convention center, which is scheduled to be completed in September next year, and a global five-star hotel.
The tycoon also harbors aspirations of building a race track on the property which would allow it to host international race events in the future, similar to the Formula 1 races in neighboring Singapore.
While Formula 1 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, 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.”
