Participation Announced for Indonesian Townhouse Project
Shimizu Corporation, under the leadership of President Tatsuya Shimmura, has officially taken a major step forward in strengthening its investment business strategy in Southeast Asia by entering into a strategic partnership with PT Agung Podomoro Land Tbk (APL), one of Indonesia’s most prominent and publicly listed real estate developers. This collaboration reflects Shimizu’s long-term vision of not only expanding its footprint in the Indonesian market but also addressing the country’s growing demand for high-quality housing.
As part of the agreement, Shimizu will participate in a townhouse development project in Bandung, West Java, led by the APL Group. The move marks the company’s first direct investment in a real estate development project in Indonesia, signifying a new dimension in its role within the country. In the past, Shimizu has been involved in the construction of luxury condominiums developed by APL. However, this latest initiative highlights a strategic shift from being a construction partner to becoming an investment stakeholder and co-developer in the housing sector.
APL’s Legacy and Position in Indonesia’s Real Estate Market
PT Agung Podomoro Land Tbk, more commonly referred to as APL, has earned a solid reputation as one of Indonesia’s leading property developers. Listed on the Indonesia Stock Exchange, APL operates across a wide spectrum of real estate segments, including the development of shopping malls, office towers, residential apartments, landed housing, hotels, and expansive superblock projects. Its track record of delivering large-scale developments has positioned it as a household name in the real estate sector and a major player in shaping urban landscapes across Indonesia.
For Shimizu Corporation, partnering with APL offers both strategic and practical advantages. Having previously undertaken construction projects for APL, including high-end condominium complexes, Shimizu has built a foundation of trust and technical collaboration with the Indonesian developer. The new townhouse initiative, therefore, represents a natural progression in their working relationship — moving from contractor to joint investor and development partner.
Growing Demand for Housing in Indonesia
Indonesia’s robust economic growth has fueled rapid urbanization, particularly in major cities such as Jakarta, Bandung, and Surabaya. Alongside this trend, the country’s expanding middle-income class has created a surge in demand for quality housing, especially in suburban and semi-urban areas.
The housing deficit in urban centers is becoming increasingly pronounced. For instance, Jakarta and Bandung face acute shortages, as demand continues to outpace supply. With rising population pressures and migration from rural to urban regions, property developers are under pressure to create more housing options that are both affordable and aligned with the lifestyle aspirations of the middle-income demographic.
It is against this backdrop that Shimizu chose to invest in the townhouse development within Podomoro Park Bandung, one of APL’s flagship township projects. The initiative not only addresses the market’s pressing housing needs but also aligns with Shimizu’s broader goal of creating sustainable and community-centered living environments.
Bandung: A Strategic Location for Development
Bandung, the capital of West Java and Indonesia’s third-largest city, is home to approximately 10 million people. The city holds a unique position in Indonesia’s economic and cultural landscape. Known as both a thriving business hub and a popular tourist destination, Bandung offers an attractive blend of commerce, leisure, and education. The city is renowned for its cooler climate, scenic surroundings, hot spring resorts, golf courses, and its strong academic presence, with numerous universities and research institutions.
The project site — Podomoro Park Bandung — is located in the southern region of the city, approximately a 30-minute drive from the city center. Its accessibility is enhanced by its proximity to a highway exit that connects the eastern and western parts of Bandung, making it a convenient location for commuters and families alike. This strategic positioning underscores why Shimizu and APL view the township as a high-potential development zone.
The township development, spearheaded by APL’s subsidiary PT Pesona Mitra Kembar Mas (PMKM), spans a vast 130 hectares of land and is designed to accommodate approximately 3,500 houses. Since its initial launch in 2018, PMKM has already delivered about 2,000 houses, proving both the viability and success of the project in addressing Bandung’s housing demand.
Details of the Townhouse Project
Within this expansive township, Shimizu will participate in the development of one of the clusters specifically targeted at the growing middle-income market. The cluster covers approximately 4.7 hectares and will deliver 384 townhouse units, each with a floor area of 31 square meters.
The project is being carried out through a joint venture structure between PMKM and Shimizu’s local subsidiary, PT Shimizu Investment Indonesia (SII). Under the arrangement, SII holds an 80% stake, while PMKM retains the remaining 20%. This ownership structure underscores Shimizu’s strong commitment and confidence in the project’s potential.
Sales for the townhouses officially began in August 2025, demonstrating APL and Shimizu’s proactive approach to meeting pent-up demand. Following the completion of soil improvement works, construction will commence, with the first units scheduled for delivery by summer 2027. The total investment for this project is expected to reach approximately 3 billion yen (about USD 20 million), highlighting its significance as a major mid-scale development within the township.
Long-Term Vision and Commitment
For Shimizu Corporation, this townhouse development in Bandung represents more than a standalone real estate project; it is the first step in a long-term strategy to expand its presence and investment footprint in Indonesia. The company’s involvement in both construction and real estate development aligns with its corporate vision of contributing to urban growth while enhancing the quality of life for local communities.
By leveraging APL’s local market expertise and Shimizu’s global technical and engineering strengths, the partnership aims to create housing that is not only functional but also sustainable, durable, and community-focused. With urban housing shortages likely to persist in Indonesia for the foreseeable future, such collaborations are expected to play a vital role in bridging the demand-supply gap.
Furthermore, the project demonstrates Shimizu’s confidence in Indonesia’s long-term economic growth trajectory. By investing in residential projects that cater to the rising middle-income class, the company positions itself to benefit from the country’s demographic dividend and sustained urban development.
The strategic collaboration between Shimizu Corporation and PT Agung Podomoro Land Tbk is a milestone in the evolution of both companies’ roles in Indonesia’s housing sector. For APL, the partnership reinforces its reputation as a trusted developer capable of attracting international investment. For Shimizu, it marks the transition from a construction service provider to a co-developer and investor in Indonesia’s dynamic real estate market.
As Shimizu continues to expand its activities in Indonesia, the townhouse project at Podomoro Park Bandung stands as a testament to its commitment to delivering quality housing and contributing to the broader development of Indonesian society. With its first units scheduled for delivery in 2027, the project is set to provide not only much-needed homes but also a model of international collaboration in urban development.
Ultimately, this initiative is more than just about building houses — it is about building communities, supporting urban growth, and laying the foundation for a long-term partnership between Japan and Indonesia in the real estate and construction sectors.
