Emaar Indonesia Lombok meeting

[yusufbg52]

Zawya Dow Jones 28 January 2010:

Emaar to meet Indonesian govt on $600 mln JV Dubai-based Emaar Properties (EMAAR) Thursday said it will meet the Indonesian government early next month to discuss how to progress with a planned $600 million tourism development on Indonesia's Lombok island after media reports said it had been thrown off the project. "Both joint-venture partners have already invested in the project and are keen to address outstanding aspects," an Emaar International spokesperson said in an emailed statement to Zawya Dow Jones. On Wednesday, The Jakarta Post cited Indonesia's Investment Coordinating Board Chairman Gita Wirjawanthe as saying that the government had terminated all commitments with Emaar because it "had failed to meet its share of the bargain in developing" the project. The Lombok Project, a joint venture between Emaar and government-owned PT Pengembangan Pariwisata Bali, is being developed on the Kuta and Tanjung beaches of Lombok. Since its launch, the project has been hampered by delays due to problems in acquiring land for the development from local residents, and problems over joint-venture arrangements. Last June, Emaar said the joint-venture partnership had been extended until Dec. 31, 2009. "In the most recent meeting held in Dubai, both parties discussed the progress to date and identified next steps and action plans," the Emaar International spokesperson said. Emaar shares last traded up 4.1% at AED3.07 in broadly positive market.