ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter

Lippo Karawaci cedes control of Meikarta developer

Transactions limit exposure to losses, helping to buoy profit

The Meikarta development in Cikarang, east of Jakarta, on Oct. 15.    © Reuters

JAKARTA -- Lippo Karawaci, the Indonesian property giant, has ceded majority ownership of the company developing its troubled $21 billion Meikarta project -- once dubbed Indonesia's Shenzhen, but which has become the focus of a major bribery investigation.

The transactions to change control will allow the group to separate losses incurred by the struggling project from its consolidated results. They have also resulted in a revaluation of its remaining stake that left Lippo Karawaci reporting significantly higher net profits for the first half of this year. Nevertheless, the group has reported a near doubling of cash outflow in the six-month period.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more