Jakarta. Industrial township developer Lippo Cikarang saw its profits declining in the first quarter of the year, due to a slowdown in Indonesia's property sector, the company said in a statement on Friday (28/04).
Lippo Cikarang, which develops a township on an area of more than 3,000 hectares with an industrial zone within it as the economic base, saw a net income decrease to Rp 185 billion ($13.88 million) in January-March, from Rp 223 billion in the same period last year.
The company's revenue also declined to Rp 447 billion from Rp 546 billion. The biggest revenue contributor came from sales of its residential units.
Recurring revenue increased by 8 percent to Rp 68 billion, contributing 15 percent to the total revenue, while assets slightly increased, by 2 percent, to Rp 5.8 trillion.
Despite the financial downturn in the first quarter, Lippo Cikarang president director Toto Bartholomeus said the company is upbeat over long term prospects, as it is currently developing Orange County, a large-scale township development project on 322 hectares in Cikarang east of Jakarta.
"We will do our best in preparing Orange County to be a sustainable project for future growth. It will be a world class mixed-use development center in the Eastern Jakarta Corridor," Toto said in the statement.
Orange County, which is developed as a globally connected city to serve as a hub for business and lifestyle activities, is estimated to require Rp 250 trillion worth of investment.
The first five residential towers at the project's site have been offered to customers before the construction works ended; 100 percent of them were sold out.
Newport Park, the sixth tower, was offered for sale in November; 87 percent of the apartments were sold on the offering day.
The fifth and sixth apartment towers are a joint venture between Lippo Group and Mitsubishi Corporation.
Lippo Cikarang develops a total of 3,000 hectares. It has built more than 14,000 houses for 50,720 residents and facilities for 484,300 people who work at 993 manufacturing companies in its industrial areas.