Lippo Group Boss Conglomerate Mochtar Riady Enters The Top 10 Richest People In Indonesia, What Up With Meikarta, Sir?

JAKARTA - Lippo Group founding conglomerate Mochtar Riady was named the 10th richest person in Indonesia by Forbes in his latest report titled Forbes World's Billionaires List The Richest in 2021.

The man born on May 21, 91 years ago was widely known by the Indonesian public as one of the senior entrepreneurs with business octopuses that spread to various sectors. It is noted that Mochtar Riady is moving through at least four Lippo business lines that today continue to grow.

First, financial services that include banking activities, mutual funds, insurance, asset management, and securities.

Second, infrastructure development such as power plants, gas production, distribution, highway construction, construction of clean water facilities, and communication infrastructure.

Three, industrial fields covering the electronics components industry, automotive components, cement industry, porcelain, coal, and natural gas.

And the fourth is the property and urban development sector, in the form of integrated satellite cities, housing, condominiums, entertainment and shopping centers, offices, and industrial estates.

If still confused, perhaps readers are more familiar with names such as First Media, Berita Satu, Matahari Department Store, Hypermart, Foodmart, to OVO. The line of brands is a few of the trademarks initiated or controlled by Lippo Group today.

However, of course, one of the most famous and phenomenal business sectors that are being worked on by the Riady Clan is Meikarta since August 17, 2017.

Through his golden son, James Riady, Lippo Group is said to be involved in the development of the most ambitious property project in the republic. Unabashedly, the value of the Meikarta project is believed to reach Rp. 278 trillion.

As an illustration, the construction of Wisma Atlet Kemayoran with a capacity of about 22,000 people in its 10 towers 'only' costs around Rp. 3.5 trillion. So, it can be imagined, how much passion Lippo to realize an integrated residential area named Meikarta.

At the end of 2017, VOI briefly met with James Riady and asked some questions. At that time, he revealed that what the company is doing is Lippo's contribution to the development of Indonesia.

"What we are doing is to assist the government in reducing the housing backlog (the difference in demand with supply)," he said.

In the document received by the editor, the blueprint of the project plans the construction of 100 buildings with various designations, such as 250,000 residential units, offices, 10 five-star hotels, commercial areas, and a green area of 100 hectares. The total land provided to realize the business expansion reached 500 hectares.

In September 2018, the construction of several infrastructures was completed. This was marked by the handover of 863 apartment units to consumers for Irvine suites tower and Westwood Suites which has a height of 42 floors.

However, the desire to realize the megaproject named after James Riady's mother, Mei, and the city of Jakarta, namely Karta is not without obstacles.

Meikarta development located in Bekasi Regency is suspected of violating the applicable rules. It is signaled that the licensing of industrial land bagged by Lippo Group and then converted into residential areas is considered to be the root of the problem.

Most recently, PT. Mahkota Sentosa Utama (MSU) as Meikarta management is said to be being sued for bankruptcy by PT. Graha Megah Tritunggal to the Central Jakarta District Court on October 6, 2020, with case number 328/Pdt.Sus-PKPU/2020/PN Niaga Jkt.Pst.

However, Lippo group is not a name if it softens in the face of business dynamics. Through PT. MSU Head of Public Relations Jefrey Rawis, the company ensures that this legal dispute is only a restructuring of the business, not bankruptcy.

"MSU is committed to the construction of apartments until it is handed over in accordance with the Purchase Agreement and unit ownership rights," he said some time ago as reported by detik.com.

Similarly, Chief Financial Officer (CFO) of PT. Lippo Karawaci Tevilyan Yudhistira Rusli confirmed that the development process is still continuing.

"The completion of districts 1 and 2 will continue to be pursued until the end of 2022 and early 2023," he said.

How, do you want to move to Meikarta?