Waskita Realty Eyes Rp 9 Trillion Worth of Property Projects This Year

BY :ANTONIA TIMMERMAN

JANUARY 25, 2015

Jakarta. Waskita Karya Realty, the property development arm of state-controlled construction company Waskita Karya, plans to work on four property projects worth a combined Rp 9 trillion ($721 million) this year, its chief said last week.

Didit Oemar Prihadi, the president director of the company known as Waskita Realty, said the biggest of the four projects by value was one in Surabaya, East Java, where the company is joining forces with private developer Darmo Permai to develop a “superblock” on a 34,000-square-meter parcel of land.

He said the development required a total investment of Rp 5 trillion. Waskita Realty owns a 51 percent stake in the project.

The other projects are apartment complexes: one in Alam Sutera, Tangerang, valued at Rp 1.2 trillion; another in Serpong, also in Tangerang, worth Rp 1.5 trillion; and one in Medan, North Sumatra, valued at Rp 1.2 trillion.

Didit said construction of the project in Alam Sutera had commenced last year and was now 50 percent complete, while the project in Medan was expected to start sometimes early this year.

Waskita Realty is also looking to tap projects outside Java, Didit said.

“In the future, we aim for Bali as a place to build new apartment blocks,” he said.

Didit said that with the strong prospects in the Indonesian property sector, Waskita Realty expected to grow its business and undertake an initial public offering in 2017.

“Of course the aim is to go public. Being a listed company will bring many advantages,” he said. Parent company Waskita Karya went public in 2013.

Last year, Waskita Karya booked a net profit of Rp 501 billion, up 36.6 percent from its 2013 profit.

The figure was also higher than the company’s target of Rp 442 billion. Waskita, like other state-controlled construction firms, has benefited from increased government spending on infrastructure projects, as well as the property sector boom.

Waskita aims to raise Rp 5.3 trillion this year from a rights issue as it seeks to expand its business.

The firm is currently working on various infrastructure projects worth more than Rp 17 trillion, according to the State-Owned Enterprises Ministry.

Among them are five toll road projects worth a combined Rp 12.64 trillion, and a power plant project on Sumatra worth Rp 5.24 trillion.

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