An Indonesian tycoon plans to defy global economic gloom by building the $2 billion, 111-storey, Signature Tower in central Jakarta, which will stand fifth among the world’s tallest towers. Tomy Winata hopes to promote investor interest with the mega project, by providing a supply of office space that will meet demand in Indonesia’s fast growing economy.
The Artha Graha group, present in property, banking, logistics, and agriculture industries, signed a deal with MGM Resorts International to manage a luxury hotel on the top 20 floors of the building, which will rise 534.5m.
30-40% of the construction costs will be funded internally, while the rest will come from bank loans, says Agung Prabowo, a director of Danayasa Arthatama, an Artha Graha subsidiary. Banks from Europe and America will be reluctant to finance such a large project despite Indonesia’s booming economy. “The key question mark hanging over a mega project like this will be the financing,” said one banker in Jakarta.
The Signature Tower will be built in Sudirman Central Business District and will be home to Indonesia Stock Exchange, banks, and international companies.