PIG
INTRODUCTION
1.1.Background
Man have life needs such as primary needs (clothing, food, shelter) and secondary
needs (shopping, recreation). However, as time goes by, space to accommodate these
necessities of life is decreasing, especially in urban areas. To meet these needs, it is
necessary to have space to accommodate several functions at once in one building. Mixed-
use building design aims to provide space that is able to meet human needs and provide
comfort for users. Multifunctional buildings or mixed-use buildings refer to a combination
of several different functions in one building, for example apartment and mall functions,
apartment and rental office functions, mall and hotel functions built on one site.
The Mixed Use Development concept is a concept that combines various activities
in one area by creating shopping centers, business centers, residences and entertainment
centers in one location. This one for all concept is expected to be a solution for society. The
Mixed Use Development concept itself consists of apartments, shopping malls, offices and
hotels all combined in one location. The choice of Mixed Use Development location still
takes into account the location of the business center and existing strategic locations,
because most people carry out their activities in that area, so if you can build a Mixed Use
Development in a prime area it is a big advantage for the builders. However, limited land
availability and high prices in these strategic areas require builders to create a Mixed Use
Development building structure concept with limited functions, which is different if
builders create Mixed Use Development in suburban areas with more affordable land prices
which allows builders to build with more diverse facilities (Dean Schwanke, 2003).
The relatively permanent existence of land gives rise to competition in obtaining and
utilizing it. However, physical and socio-economic land factors influence the ease of
obtaining a plot of land so that the value of land in an area is not always the same
(Kartono.et al, 1989). Thus, the value of land in urban areas that has a strategic location,
good quality roads and complete facilities, will be different from the value of land that is
characterized as rural. The strongest land value competition is in the central city, because
in that area the most profitable locations are presented, in addition to the scarce land. Land
prices are a reflection of land value from an economic perspective (Solichin, 2008), high
land value This is indicated by high land prices. So we can find out where the strategic
locations or main locations of a city are by looking at the land prices.
This land has the potential to be developed because it is located right next to the
hospital in a mixed area with fairly compact mobilization. The company's land
development plans are partly due to requests from hospitals who plan to expand in order to
improve quality and service. So as to increase company income and develop asset
optimization. PT. ABC The land builds a mixed-use building, consisting of a hospital
extension, service residences and commercial areas. The construction of a project requires
a feasibility study which is intended as material for consideration and decision making to
realize the development plan. A business feasibility study is an analysis that studies the
feasibility of a business. This study provides an overview of investment plans in terms of
market aspects, technical aspects, financial aspects and future business prospects.
Furthermore, based on market analysis carried out to determine macroeconomic
conditions and related industrial market conditions according to the location of the asset
and the conditions around the asset, so that business development can be monitored. Several
factors analyzed include: economic conditions, property conditions, supply and demand,
and market prices. The following macroeconomic conditions are seen from several
economic indicators, including GDP, inflation, exchange rate, and BI 7-Day Reverse Repo
Rate (BI7DRR) which are shown in the table below:
Table 1.1.
Economic Indicators 2018-2022
Source: Bank Indonesia, 2022
Based on the table above, it is known that the Indonesian economy based on the size
of Gross Domestic Product (GDP) at current prices in the fourth quarter of 2022 reached
IDR 19,588.6 trillion. After the Covid-19 pandemic, economic conditions continue to
recover in various countries, providing positive prospects for the global economy,
including Indonesia. In the real estate sector, business grew by 0.96% (yon-y) supported by
increased sales and operating income of several property development companies.
Investment growth in Indonesia has experienced a positive increase. Based on a report by
the Investment Coordinating Board (BPKM), Indonesia's investment realization in the
second quarter of 2023 increased 15.7% compared to the same quarter last year, with total
investment reaching IDR 349.8 trillion. The contribution of Foreign Direct Investment
(PMA) in the second quarter of 2023 grew by 14.2% on an annual basis to IDR 186.3
trillion. Meanwhile, Domestic Investment (PMDN) was recorded at IDR 163.5 trillion or
grew 17.6% (y-on-y). Based on existing data, although the majority of investment comes
from abroad, domestic investment is growing positively
Current investment developments have made business managers create various
attractive products or services that can be offered to the public, which can be shown in the
table below:
Table 1.2
Domestic investment
East Jakarta is an administrative city in the eastern part of DKI Jakarta, and the center
of government is in Cakung. As the largest area in DKI Jakarta, the regional government
needs independence in exploring revenue potential to fulfill the majority of its development
budget. One alternative that can be used as an option to optimize regional income sources
is to optimize regional assets. Management of regional assets within the government is
faced with two conditions, namely the existence of dormant assets that have not been
utilized or assets that have not been utilized optimally. Regional assets that have not been
utilized optimally are generally grouped into assets run by State-Owned Enterprises for
benefit centers that can make a significant contribution to Regional Original Income (PAD).
Regionally Owned Enterprises move into various sectors.
Based on a report from the Central Statistics Agency (BPS), the real estate sector
business grew by 0.60% (q-to-q) in the second quarter of 2023, supported by an increase in
sales and operating income of several property development companies. Jakarta is a big
city that has many development companies. As an economic center, the majority of
company headquarters are located in this area. Movement and competition in the real estate
industry clearly occurs in every city in Jakarta, and the East Jakarta area is one of them.
Even though urban development is not as fast as other regions, the East Jakarta
Administrative City has the potential to develop. One of the triggers is the construction of
the Jakarta LRT infrastructure with a Hub Station in Cawang, thereby attracting the interest
of investors and property developers
Source: BPS data
PT ABC is a subsidiary which operates in the property development sector which
focuses on residential, office, commercial and other property development activities. As a
regional government property developer, PT ABC continues to develop and improve
performance through innovation and creativity in property products. The company's vision
is to become a respected global property company, therefore the company continues to
increase added value for the company optimally. PT ABC has total land assets of around
7.3 hectares in strategic locations. One of the assets is located in Kayu Putih, Jakarta and
covers an area of 4,600 square meters. What is currently active functions as a gas station
on the front side, while the back side is left empty with flat land.This company has three
business divisions, consisting of 3 subsidiaries, namely infrastructure property and utilities.
With its experience and assets, and supported by competent management and resources,
the Company continues to expand and strengthen itself, not only to generate profits, but
also to become a development agent that contributes to development that has a direct impact
on the people of DKI Jakarta through property management like; Pluit Junction Mall, Fave
Hotel, Aston Hotel Pluit, Paradiso Apartments, River Side Apartments, Marina
Apartments, Matoa Residence housing and Duta Harapan Indah (DHI) Warehouse and
Office Management in Kapuk Muara and Offices in Landmark Pluit.
