Developer Pakuwon Jati Sees Profit Growth of 51% for 2013

Jakarta. Pakuwon Jati, a property developer, saw a 51.3 percent increase in profit last year on rising revenue.

Net income at Pakuwon rose to Rp 1.13 trillion ($99.3 million) last year from Rp 748 billion in the previous year. Revenue increased to Rp 3.03 trillion from Rp 2.16 trillion in a year earlier, the company said in a statement released in Jakarta on Monday.

Irene Tedja, head of investor relations at Pakuwon, said that development revenue — income from the sales of apartments and residential units — accounted for 53 percent to its total revenue.

The development revenue stood at Rp 1.59 trillion last year, Irene said adding that it had grown 30.6 percent from 2012.

The company benefitted from apartment sales at its Education City apartment block and landed residential unit sales at the Pakuwon City residential area, both located in Surabaya, East Java.

Irene said the rest of the company’s total revenue came from its recurring revenue — or income coming from the rental fees of malls, office towers, and hotels.

The company raked in Rp 1.43 trillion in recurring revenue last year from Rp 943 billion in the previous year.

Irene said the recurring revenue growth was supported by rent fees from its Kota Kasablanka mall in South Jakarta, Gandaria City super block in South Jakarta and the Tunjungan City super block in Surabaya, East Java.

Pakuwon expects to receive additional revenue from the expansion project of Tunjungan City, which is currently under construction, Irene said.

The expansion project includes two retail malls, two condominium towers, and a four-star hotel.

Pakuwon plans to build a condominium and office tower at the Kota Kasablanka super block. The Pakuwon City residential area will see the addition of a new landed residential cluster at this year.

Pakuwon Jati shares closed unchanged at Rp 354 on the Indonesia stock Exchange (IDX) on Monday.

Source: www.thejakartaglobe.com

Property, Construction Lead Indonesian Stock Market’s Gains This Year

Jakarta. Property and construction companies are leading Indonesian stock market gains so far this year, as investors expect good earnings on the back of steady property demand and acceleration of government-initiated infrastructure projects.

The sector — which groups 54 construction companies and property developers — has gained 11.2 percent so far, while the Jakarta Composite Index has gained 4.5 percent.

Indonesia leads Southeast Asia residential market, says Jones Lang LaSalle

Buoyed by a strong domestic demand for housing and increasing property prices, Indonesia is seen as the leader in Southeast Asia residential market, according to a new Jones Lang LaSalle report.

The 21 percent annual increase in prices recorded by Jones Lang LaSalle in 2012 suggests that the country’s real estate economy is on the rise, ahead of other emerging markets like the Philippines and Thailand.