There is no limit to the scope of the property industry in Indonesia however sometimes capital is a limitation. Therefore joint ventures are a good way to overcome this for larger projects Mr Robert Yapari, President Director |
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Trivo Group is engaged in commercial property development in Indonesia and has been involved in several commercial projects such as the Tangcity Superblock in Tangerang, Pusat Grosir in Cililitan and Sentra Grosir in Cikarang. What was the background to the founding of the company and what can you tell us about your current project portfolio? We set up Trivo Group in 2004 when we had the opportunity to take over the Pusat Gros Cililitan project as it was having problems in its operational management. We learnt from this project and then we moved ahead with our second project in Cikarang; this was a bus terminal and we had the opportunity to turn this into a commercial project as well as for public transport purposes. When selecting projects to take on, we look for the needs in the Indonesian market and create projects. I have closely studied mixed use projects in markets such as Japan where places such as bus terminals are made into mixed used developments which we did not have here in Indonesia before. The third project that the group undertook was in Tangerang and this was once again in public transport but this time using a more complete concept that combines commercial use with places to stay overnight. This project is on a large plot of land of around 11 hectares. The decision was made to construct shop houses or ‘rukos’, a mall and then two hotels; a 2 star hotel and a 4 star hotel as well as a residential building. I believe that these types of projects are the future of Indonesia as they create more efficient places to rest and enjoy leisure time around key transport hubs. In terms of location, we have concentrated on the suburbs of Jakarta as the centre of the city is already well developed. Most people live in the suburbs yet there were not enough facilities available to them. Since decentralisation and the growth of the Indonesian economy as a whole, there is a new impulse to develop the areas outside of Jakarta and we saw this as a chance. Since 2005 we have focused solely on commercial projects but now we see that real estate and residences are a key area of opportunity for high rise construction as transport links to the suburbs have improved. Previously these areas were very difficult to develop as they did not have access to electricity and other utilities so one would have to construct them themselves to make a project viable, but this is not the case anymore. Tangerang and Bekasi are the sites of our current projects and in the future we will establish projects in South Jakarta and Bogor. Every one of our projects arises out of seeing the needs of the community for that area and foreseeing their growing purchasing power. Commercial projects are therefore highly profitable as the construction of shop houses and malls encourages entrepreneurs by providing a location for them to set up their business. In addition to your current residential and commercial property projects, what projects do you have planned for the future? In Tangerang City we have built two towers and we will have a total of five towers which will serve as residences. In Depok I plan to develop residences and a dormitory as there are many students there due to Universitas Indonesia. I am also planning a hotel for when people visit such as relatives of university students. Outside of the Jakarta area there are further areas that we wish to enter in the future as they are also growing at a fast pace. |
We plan to undertake projects in Bali and I am also looking at Sulawesi for the future as the East of Indonesia holds a lot of potential as long as the progress continues at the same rate. Many property developers in Indonesia pride themselves in successfully combining living and working areas as well as being environmentally friendly. In such context, what do you believe is Trivo Group’s real competitive advantage? We produce real concepts and deliver them in our projects. Once we have completed the project we also maintain the development even after we have sold it. We always deliver on time and meet the quality that we promise which is good quality but not luxury quality. Other factors are taken into consideration such as the quantity to ensure that we do not oversupply the product as this will decrease the value for residents in the future. For every project we complete we also set up a team for estate management to assist in maintaining the project and the services that it requires such as cleaning and we also work closely with local governments of where our projects are located. This is how we compete with others in the sector in Indonesia as we earn trust from clients and tenants. How is the company positioned towards international investors and partners looking to enter the Indonesian market? There is no limit to the scope of the property industry in Indonesia however sometimes capital is a limitation. Therefore joint ventures are a good way to overcome this for larger projects. Synergies are a way of making future projects successful and in turn making ourselves stronger in terms of capability and capacity. We are a local Indonesian partner who can actively participate in a property development project and not just in a financial capacity. We know the culture of Indonesia and have experience in working with local government as our previous projects have involved government owned land which we then build on and operate such as for public transport. Therefore our advantage as a partner is our knowledge as you need to be familiar with the local communities of where your projects are situated in Indonesia to ensure that they enjoy the added value of your projects. What we would be looking for is financial support to make the scope of our projects wider and to facilitate faster execution. From a partner we would expect them to work in such a way that they can bring value in terms of technology and capital. What should potential partners and investors in Indonesia’s property sector remember as a final message? Indonesia has many kinds of people, we are a Muslim majority country but we are a moderate country. The economy is growing which is providing opportunities for employment and Indonesia has many needs which open up commercial opportunities. The country has many natural raw materials which require expertise to gain the added value before exporting so we need international partners and investors to come to Indonesia to assist in doing this. As long as you know how to approach the market and can appreciate that Indonesia is unlike anywhere else, then you will be able to succeed here. |
Global Business Guide Indonesia - 2013