Lippo Cikarang saw its profit skyrocket in the first half of this year after consolidating gains from Mahkota Sentosa Utama, the developer of its Meikarta megaproject, the company said in a statement last week. (Photo courtesy of Meikarta)

Lippo Cikarang Sees H1 Profit Skyrocket After Consolidating Gains From Meikarta Developer

NOVEMBER 01, 2018

Jakarta. Urban developer Lippo Cikarang saw its profit skyrocket in the first half of this year after consolidating gains from Mahkota Sentosa Utama, the developer of its Meikarta megaproject, the company said in a statement last week.

The company said its first-half net income increased 985.4 percent year-on-year to Rp 2.87 trillion ($189 million).

"It was mainly attributable to a gain from the deconsolidation of Mahkota Sentosa Utama, a subsidiary of Lippo Cikarang, amounting to Rp 2.35 trillion," the company said in the statement.

Lippo Cikarang's total revenue meanwhile increased 37 percent to Rp 1.15 trillion, while recurring revenue increased 14.8 percent to Rp 157 billion.

"While we face challenges due to declining growth in Indonesia's property sector, coupled with increasing competition in the industry, we continue to work hard on LPCK's development," Lippo Cikarang president director Simon Subiyanto said, referring to the company by its ticker symbol.

Lippo Cikarang said in the statement that it would continue to focus on its township development, complete with all-round facilities.

It recently handed over two residential towers in the Meikarta CBD – Irvine and Westwood, comprising a total 863 apartment units – to customers. The towers cost Rp 709 billion to develop.

"This shows LPCK's commitment to deliver the physical units on time," the company said in the statement.

Lippo Cikarang manages a township named after itself in Cikarang in Bekasi district, West Java. The area is located in Jakarta's eastern corridor, surrounded by several new industrial townships, including Deltamas, Jababeka and MM 2100.

Lippo Cikarang township is located close to several projects initiated by the central government, including a light rail transit system connection East Bekasi with Cawang in East Jakarta, the Jakarta-Bandung High-Speed Railway and the Jakarta-Cikampek II elevated toll road.

The company owns 3,250 hectares of land and it has built more than 17,000 homes, providing accommodation to more than 51,000 people. An estimated 500,500 people are employed by about 1,200 manufacturing companies operating in its industrial townships.

Lippo Cikarang is a subsidiary of Lippo Karawaci, a property arm of the Lippo Group, to which the Jakarta Globe is affiliated.

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