Jakarta Plans Business Center on Former BPSDM Site Without APBD Funding

Jakarta Governor Pramono Anung inspected a 2.4-hectare former Human Resources Development Agency (BPSDM) site in Kuningan, South Jakarta, on Thursday (6/11).

This is truly a premium asset because it is located in Jakarta's Golden Triangle

The site is a regional government asset located in one of Jakarta's most strategic areas, within the capital's Golden Triangle business district. However, the asset has yet to be utilized optimally.

Pramono: Public Facility Assets Must Serve the Public Interest

"This is truly a premium asset because it is located in Jakarta's Golden Triangle, which serves as a center for offices, shopping, housing, recreation, and lifestyle activities," Pramono said.

Pramono noted that the site holds significant strategic value because it is situated in Jakarta's central business district and surrounded by office buildings and foreign embassies.

The site is projected to become the Jakarta International Cultural Hub, combining cultural and entertainment facilities, MICE venues, hotels, serviced apartments, and office space to support national and international events in Jakarta.

The governor also instructed that green open space be included in the development plan.

"I will soon decide that this former BPSDM asset will be developed for MICE facilities, hotels, offices, housing, apartments, lifestyle activities, and, of course, office space for BPSDM," he said.

The project will be financed through a creative financing scheme, specifically a utilization partnership with the private sector, without relying on the city budget (APBD).

Under the scheme, the development will not place a burden on regional finances. Pramono said the project has significant potential through collaboration with private investors.

The investment value of the project is estimated at around Rp1.53 trillion, with a cooperation period of 30 years. Construction is expected to take approximately three years and is targeted to begin in early 2027.

The Jakarta administration is also offering the possibility of extending the partnership for an additional 20 years.

"And if both parties wish to extend the agreement, there is still room for roughly another 30 years, meaning the total cooperation period at this location could reach 80 years under existing laws and regulations," he said.