Jakarta. PP Properti, a listed property developer of state-owned builder PP, has exceeded the 2017 net income and presales targets, bolstering its confidence to repeat the feat this year.
PP Properti booked Rp 440 billion ($30.80 million) in net income last year, up 9.6 percent from a year earlier, and Rp 3 trillion in presales, or up 21 percent, thanks to robust sales of its new apartment projects, according to the company's unaudited report.
"We are very confident and optimistic about the achievement," PP Properti president director Taufik Hidayat said in a statement on Wednesday (03/01).
Taufik said the company expects net income this year to increase by a fifth to Rp 528 billion and presales by a quarter to Rp 3.8 trillion.
The company's Grand Kamala Lagoon apartment in Bekasi, offering affordable flats with a toll road link to Jakarta downtown, contributed 24 percent of the company's total presales.
The company claims on its website that the 25-hectare project can still be developed for the next 15 years, with potential sales of Rp 20 trillion.
The company's other projects include Grand Shamaya in Surabaya, East Java, which contributed 18 percent, Alton Semarang in Central Java (11 percent), Evenciio Depok in West Java (10 percent) and Begawan Malang in East Java (9 percent).
PP Properti's achievement comes against a slowdown in residential property sales in the past year.
The latest reading of quarterly sales growth was 2.6 percent in the third quarter of 2017, far below the 11.6 percent average in the past three years, according to a Bank Indonesia property survey.
Still, Taufik said 2018 will be PP Properti's year of harvest, as the company is going to sell projects on the 297 hectares it owns in densely populated areas like Cibubur in East Jakarta, Depok, Semarang and Bandung.
"Our capital expenditure in 2018 will be only Rp 1.8 trillion, which will be used for paying installments of loans for that land. Debt is only used for refinancing," he said.