A Word with GHN Advisory Board Member Shirley Tan
2019 Priorities and Growth Aspirations
Rajawali Property Group
Rajawali Property Group started in the late 1980s with a vision to transform Indonesian tourism through pioneering international hotel development to capitalize on the fast growing international tourism, while simultaneously creating last scale employment opportunities for Indonesians in the world’s 4th most populous country. Now RPG becomes Indonesia’s leading and most reputable real estate investment and asset-management company in Asia-Pacific, with over 100 corporate employees in 3 corporate offices in Jakarta, Kuala Lumpur, Singapore, and with over 5000 employees working in RPG portfolio hotels. RPG’s portfolio consists of over USD1B of hospitality, office and residential assets; including award-winning hotels such as Four Seasons Jakarta, St Regis Bali, St Regis Jakarta and others. At the very heart of Rajawali Property Group is the principle to create long-term value for our investors while having a sustainable and positive impact on the communities we operate in.
We are currently constructing a USD700M GDV mixed-used development including a 280 keys St Regis Hotel, the new Rajawali office headquarters, and a 164 keys of branded St Regis residences.
We have two strategic joint venture platforms; one of which is a USD500M equity JV Platform with GIC Singapore, to develop core assets in Jakarta’s CBD. We are also focusing on forming a new strategic JV MOU with another strategic partner for tourism related assets development on the next 10 Bali in Indonesia. Besides our strategic platforms, we entered into a joint venture to develop a luxury hotel in Lake Como with a Dutch-Italian private equity fund.
Our new growth aspirations are what we call next generation business; looking at next gen hotels, potential investments in a real estate technology company to capitalize future trends. The future of global hospitality industry will be driven by a few mega trends: The rise of millennial, with 2.3 billion people is the biggest demographic wave in history, far bigger than baby boomers and generation X, and will soon be the main economic engine of wealth creation and consumer spending; AI and technology disruptor, will continue to disrupt in real estate one of the least disrupted industry; the democratization and of luxury; and the integration of goods, services, experiences into one; as well as intelligence customization, digitalization, instant sharing.
Socially minded endeavors
If there is one thing that gives meaning and drives what I do at RPG; it is the belief that what I do every day is contributing to social and economic development at the same time. Global travel and tourism employs 9% of world’s total employment; and in an emerging economies country like Indonesia, where there is natural beauty, hospitable people who likes to share their cultures, the impacts are far reaching. What we do in building hotels, pioneering a new wave of destination development contributes to the creation of wealth, and sharing of wealth. Opportunities are wealth. It is wonderful to see people who have nothing rise through the ranks and become middle class, having good jobs and a global mindset. And to see them being empowered to give back to their communities, help their villages, and buy produces from farmers and fisherman.
Besides that I also sit in board of Rajawali Foundation. RF’s emphasis on education is driven by a fundamental belief that knowledge, skills and creativity are the true foundations of equitable and sustainable economic development. With 5 country-specific initiatives and programs The Rajawali Foundation Institute for Asia (https://ash.harvard.edu/rajawali-foundation-institute-asia ) is a permanently endowed institute within Harvard Kennedy School, and it convenes leaders from the academic, policymaking, business, and student communities to deepen understanding of the region, explore possibilities for innovation, and advance important initiatives that will affect millions of lives in Asia. RF is also launching a MicroMasters through the Thunderbird School of Global Management to teach global management and strategy to middle managers in Indonesia.