Jakarta. Listed industrial township developer Lippo Cikarang is upbeat that its financial performance will be restored after its profit declined last year due to an economic slowdown that dragged down the property sector.
Lippo Cikarang president director Toto Bartholomeus said the company believes its financial performance "will soon bounce back," thanks to massive investment in Orange County, a large-scale integrated project.
The developer saw its net income decline by 40.7 percent to Rp 539.8 billion ($40.3 million) last year. Total revenue also declined 27.1 percent to Rp 1.54 trillion.
The company said the economic slowdown and rupiah depreciation affected the entire property sector in the country.
"Lippo Cikarang's achievement in revenue and net income for the year 2016 were in line with the slowdown in Indonesia's property sector," Toto said.
Its biggest contributor came from residential housing and apartments, which made up 46 percent of total revenue, followed by commercial projects and shophouses, which contributed 22 percent. Revenue from the sale of land in its industrial parks made up 15 percent of total revenue, or Rp 240 billion.
Lippo Cikarang said its recurring revenue increased by 13 percent to Rp 267 billion.
Orange County in the eastern Jakarta corridor will occupy 322 hectares, with estimated project value of Rp 250 trillion.
Six residential towers have already been offered to buyers and 87 percent of the units that will be available have been sold out.
Lippo Cikarang forged a joint venture with Japan's Mitsubishi Corporation to develop the fifth and sixth apartment towers at Orange County.
Lippo Cikarang, which has a total area of more than 3,000 hectares under development, mainly focuses on industrial estates. The company has developed more than 14.000 houses, and it has 50,720 as residents in its township. About 484,300 people work in the town and there are 993 manufacturing companies with facilities in its industrial area.
The company is a subsidiary of Lippo Group's property developer arm Lippo Karawaci.
The Jakarta Globe is affiliated with the Lippo Group.