BSDE Raises Operating Revenue Of IDR 7.31 Trillion To The Third Quarter Of 2023

JAKARTA - Sinar Mas Group issuer, PT Bumi Serpong Damai (BSD) Tbk (BSDE) posted a operating revenue figure of IDR 7.31 trillion in the third quarter of 2023.

The largest contribution to consolidated operating income comes from the land sales segment (lot), buildings and strata title which reached 82.57 percent of total operating income, which was IDR 6.03 trillion. This segment grew by 8.15 percent when compared to the achievement in the same period last year, which was IDR 5.58 trillion.

Solid operating income performance yielded sweet results, in which profit for the current period could be attributable to owners of the parent entity of IDR 1.77 trillion. This figure grew significantly by 92.64 percent when compared to the achievement of the same period last year of IDR 918.30 billion after deducting taxes.

Director of PT Bumi Serpong Damai Tbk Hermawan Wijaya said BSD City as a flagship project of BSDE became the largest revenue contributor.

This achievement can also be seen in the pre-sales figure in the third quarter of 2023 which reached IDR 8.8 trillion. Sales of residential and commercial units in the independent city area of BSD City were recorded at 75 percent of the total pre-sales figure.

"The large number of residential sales was supported by sales of superior BSD City product units, such as Enchante, Eonna, Tanakayu, Nava Park and Hiera. Most of the sales of shophouses came from Enchante Business Park and Delrey Business Townhouse at BSD City, along with Front Row Studio Loft in the City of Tourism in Cibubur," Hermawan said at the Public Expose Live 2023 online, Tuesday, November 28.

The apartment units come from the sale of The Elements, Southgate and Aerium units, located in Jakarta, as well as Akasa, Upper West and Marigold, located in BSD City.

The BSDE independent city project is not excessive as one of the pioneers for the construction of an independent city around Jabodetabek.

This is the vision of the founders to anticipate population density and the difficulty of finding residential land in the capital city of Jakarta.

To attract interest, BSDE prepares an independent city that carries the concept of mixed-used starting from residential areas, commercial, offices, education to entertainment (malls and recreation arenas).

It is known that BSD City's long journey began in 1984, at which time the founder founded PT Bumi Serpong Damai and in 1989 began building BSD City phase I covering an area of 1,500 ha.

The founders' vision is to make the BSD City area a new economic center in the sub-urban area of Jakarta. In 2007, the first phase of development was completed in large part and in the stage of opening development to phase II with an area of development covering an area of 2,000 ha.

Now, phase II is almost complete and currently BSDE has begun to enter phase III development covering an area of 2,450 ha. To date, BSDE is not only known as the largest owner and developer of Mandiri City in Indonesia but is also known as one of the property issuers with the largest capitalization value in Indonesia, which is IDR 21.28 trillion (as of October 31, 2023).

After going through restructuring in 2010, the parent BSDE for several subsidiaries of properties owned by Sinar Mas Land, such as PT Duta Pertiwi Tbk, PT Sinar Mas Wisesa, PT Sinar Mas Teladan and others, each manages high-value property projects in various major cities of Indonesia.

Hermawan added, now BSDE has a solid and diverse project diversification. Project portfolio diversification is now spread across nine major cities in Indonesia, such as Greater Jakarta, Palembang, Medan, Balikpapan, Samarinda, Manado, Semarang, Surabaya, and Makassar.

"Each project is supported by superior connectivity connected to main roads and public transportation centers, making it very attractive to the public. Most recently in 2022, BSD CITY is directly connected to the Serpong-Balaraja Toll Road which increases accessibility and connectivity in the area," he said.

As of September 2023, BSDE itself has real estate reserves worth a total of IDR 13.66 trillion. The supply consists of land and buildings that are ready to be sold worth IDR 4.28 trillion. Then there are buildings that are being constructed for IDR 2.18 trillion, land that is being developed for IDR 7.20 trillion, as well as hotel and other supplies of IDR 1.06 billion.

Most of these supplies are located in BSD City which is the flagship project of Sinar Mas Land in Indonesia. The provision of incentives from the government in the property sector will be a positive driver for property growth this year and early next year.

With solid fundamental conditions and abundant land reserves and projects, BSDE is optimistic that it will continue to grow sustainably and provide more value to stakeholders, especially shareholders.