Leading real estate developer sets a new benchmark for precast production in Indonesia

PT Modernland Tbk. is one of the leading Indonesian real estate developers in the Jakarta capital region. The company is in possession of a land bank of over 1,600 hectares, which provides development options for the coming 12 years. PT Modernland was founded in 1988 by Luntungang Honoris, owner of the Modern Group and one of the most successful Indonesian entrepreneurs. Since its establishment, the company has been extremely successful in focusing on its industrial real estate, commercial real estate development, and residential portfolios. The latter is its main line of business and also includes the development of so-called integrated housing estates.

Last year, PT Modernland decided to invest in a state-of-the-art carousel system supplied by German engineering company Ebawe to be able to complete its large number of projects in a timely manner and to a high quality standard. Ebawe is a member of the Progress Group and one of the leading providers of production equipment and comprehensive solutions for the precast industry. The carousel system will soon be complemented by a state-of-the-art mesh welding line supplied by Progress Maschinen & Automation, another member of the Progress Group.

Cutting-edge production equipment “Made in Germany”

The new plant is located in the industrial estate of Cikande, Banten, which is also part of the Modernland Group; the company is pursuing a holistic development concept for this property. The name PT Modern Panel Indonesia was chosen for a concrete production center currently under construction, which is designed to produce both precast elements and ready-mixed concrete.

The new precast plant will initially provide an annual capacity of about 200,000 m². It is designed to manufacture a wide range of precast components for own projects and for the open market, including floor slabs and walls as well as façade panels for high-rise projects, single-family homes, commercial buildings, hotels, office buildings, retaining walls, and other products.

Thanks to its flexible plant design, Modernland is in a position to manufacture precast elements suitable for use across its entire portfolio encompassing industrial real estate, commercial buildings, and residential development. Cutting-edge production machinery “Made in Germany” ensures a high quality standard of the finished products. State-of-the-art mixing equipment makes it possible to produce sophisticated concrete mixes required for the manufacture of precast elements. A complex compaction unit de-aerates the concrete and ensures perfect compaction so that superior product surfaces can be created in the subsequent multi-stage leveling and smoothing process. In the next step, precast products are stacked on a transfer unit and moved to the curing area. In the start-up phase, reinforcing steel will be produced in a purely manual process, but preparatory work is currently underway to commission an automatic mesh welding line, which will be supplied by Progress Maschinen & Automation, another member of the Progress Group. This investment decision brings about tangible benefits since the number of staff required per shift will decrease from 15 to 20 people to just one or two machine operators needed for mesh production. Furthermore, tailored mesh production will eliminate offcuts completely – each mesh will be fabricated just in time according to specific project requirements.

The benefits of precast construction for Indonesia

Compared to conventional construction, Modernland firmly believes in the large number of benefits of the precast method, including a 50% reduction of construction time particularly in the case of multi-story buildings, which is one of the most compelling arguments in favor of precast, according to Modernland.

Consistently high product quality is another major advantage because precast elements are manufactured in a controlled factory environment, independently of any weather impact or staffing bottlenecks etc. In addition, environmental impact can be reduced by feeding concrete residues back into the production process.

Furthermore, the company is particularly concerned with earthquake-resistant construction because Indonesia is located on the so-called Pacific Ring of Fire, a volcanic belt that extends over the entire country and is associated with a correspondingly large number and magnitude of earthquakes. Modernland employs latest precast technology to ensure that all real estate development projects for which precast components are produced in the new factory conform to highest safety standards.

New mixing unit and truck mixer fleet

Yet the business has also laid the foundations for setting up a new ready-mixed concrete plant: Modernland already operates a small fleet of six truck mixers to supply own projects and external customers within a 50 km radius. The new mixing unit is also “Made in Germany” – it was supplied and installed by renowned mixer manufacturer, BHS-Sonthofen, in collaboration with its local partner, PT Detede. It has an output of approx. 500 m³ per shift and meets exceedingly demanding quality requirements.

Learning from the precast pioneers in Asia

For Modernland, it was very important to learn from the experience of other leading precast producers and real estate developers right from the outset and to initiate the sharing of experience and expertise. For this purpose, the company’s management team, including its President Director, William Honoris, traveled to Thailand to benefit from the precast pioneers in Asia, among them Thai real estate developer Pruksa. This company commissioned its first precast plant about 15 years ago and is currently operating seven factories that produce more than 1,500 dwelling units per month. Thus, Pruksa is one of the most successful precast producers – presumably not just in Asia but on a global scale.

“Even though there’s still a long way to go for us to get there”, Hendy Wijaya, Managing Director of PT Modern Panel Indonesia, concludes, “it is important to us to explore new lines of business properly right from the start. We firmly believe that a country such as Indonesia, with its more than 250 million inhabitants, will see a growing demand for high-quality, safe housing in the years to come. As in the past, we are determined to play our part in this development.”