REPUBLIKA.CO.ID, JAKARTA -- Indonesian and Malaysian property development companies will be constructing affordable housing in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek).

This was stated by a property developers group in a statement received by Antara here on Tuesday.

A memorandum of understanding regarding a housing project was signed by the managements of Sime Darby Berhad, I & P Group Sdn. Bhd, S P Setia Indonesia, and PT Hanson International Tbk in Jakarta on the sidelines of the 12th World Islamic Economic Forum here on Tuesday.

Based on the MoU, a joint venture will be set up with the Malaysian company having an equity of 20 percent while 40 percent will be owned by PT Hanson.

"As the largest property developer in Indonesia, PT Hanson is optimistic that this project will contribute to the government's efforts to provide affordable housing to the people," the Chairman of Hanson Group, Edi Yosfi, said.

Based on the area, PT Hanson is the largest property developer in Indonesia with projects spread over 3,500 hectares.

These companies will be building houses on 500 hectares of land in Maja, Tangerang, Banten Province with an investment of US$862.27 million.

Maja is located in the west of Jakarta, close to the industrial area in Banten, where about 400 thousand people work in 1,500 factories.

Demand for the housing projects in Jakarta is influenced by the rapidly growing middle class population.

Affordable housing is part of the future envisioned by the administration of President Joko Widodo.

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