Jakarta. Urban developer Lippo Cikarang posted excellent financial results after consolidating gains from Mahkota Sentosa Utama, the developer of its flagship property project, Meikarta, in Cikarang, West Java.
The company said its net income increased 593 percent to Rp 2.9 trillion ($199 million) in the first nine months of this year, compared with the corresponding period last year. Revenue meanwhile increased 50 percent to Rp 1.84 trillion.
Lippo Cikarang's recurring income increased 18 percent year-on-year in the January-September period to Rp 247 billion, making up 13 percent of total revenue.
"The third-quarter 2018 results are below expectation, mainly due to the soft property market in Indonesia during the period," Lippo Cikarang president director Simon Subiyanto said.
"However, with our vast landbank and continuous landed housing projects, coupled with commercial areas, we believe we will have sustainable projects for our future growth," he added.
The property company recently handed over two residential towers in the Meikarta CBD to customers.
Lippo Cikarang manages a 3,250-hectare township in Bekasi district, West Java.
Meikarta is an integrated township project designed to become a new residential and business center, 40 kilometers east of Jakarta. The Rp 278 trillion project is expected to have a multiplier effect on the now mostly industrial area.
The Jakarta Globe is affiliated with the Lippo Group.