[Updated at 08:17 p.m. on Friday, Jul 31, 2015, to correct net income figure in the second paragraph]
Jakarta. Indonesian property developer Lippo Karawaci booked solid profit growth in the first half of the year despite a weak economic backdrop, thanks to the resilient growth of its health care business.
The company's net profit climbed 15 percent to Rp 775 billion ($57 million) in the first half of the year, as revenue grew 16 percent to Rp 4.75 trillion, the company said in a statement to the Indonesia Stock Exchange (IDX).
"When we faced challenges through the nation's slowing economic growth, which has weakened purchasing power and increased competition in the property market, especially for skyscrapers, our business has remained to be the consumers' main choice," Ketut Budi Wijaya, president director of Lippo Karawaci, said in a statement on Friday.
The fastest growth during the period was seen in the company's health care business, where its revenue climbed by 27 percent to nearly Rp 2 trillion, thanks to the 13 new hospitals that the company opened this year. The health care division contributed roughly 42 percent of Lippo Karawaci's total revenue.
Revenue from Lippo Karawaci's residential and urban development division went up by 10 percent to Rp 2.1 trillion, contributing to 44 percent of the total revenue, while its asset management business grew 16 percent to Rp 374 billion.
Meanwhile, the company's retail and hotel business, which account for about 5 percent of the group's total revenue, slipped 5 percent to Rp 284 billion.
"The strategy is to maintain balance between income from property development and recurring income. This has helped us become resilient amid the current weakening cycle in the property market," Budi said.
Shares of Lippo Karawaci closed 1.3 percent higher at Rp 1,150 on the IDX on Friday.
The Jakarta Globe and GlobeAsia are affiliated with the Lippo Group.