The Company Whose Shares Are Owned By Indonesia's Richest Widow, Conglomerate Arini Subianto, Still Loses Rp190 Billion In The First Semester Of 2021

JAKARTA - The industrial land developer PT Surya Semesta Internusa Tbk recorded an unsatisfactory performance in the first semester of 2021. The issuer codenamed SSIA posted a decrease in revenue which caused losses to increase in the first six months of this year.

In SSIA's financial report published on the Indonesia Stock Exchange (IDX) website, quoted on Monday, September 6, the company whose shares are owned by conglomerate Arini Subianto posted revenue of IDR 870.97 billion. Realization was down 40.57 percent compared to the same period last year worth Rp1.46 trillion.

As a result, the current period's loss attributable to the owner of the parent entity, which owns the Surya Cipta industrial estate in Karawang, has also deepened to Rp190.82, from a previous loss of Rp122.90 billion. Meanwhile, EBITDA fell 152.5 percent to minus IDR 24.5 billion from IDR 46.5 billion previously due to pressure from 58.1 percent of hospitality EBITDA.

SSIA's cash position until the end of June 2021 reached IDR 1.06 trillion, up 32.8 percent from the position at the end of the first quarter of 2021 of around IDR 799.5 billion. This increase was supported by the second tranche of loans from the International Finance Corporation (IFC) worth US$45 million.

From the asset account, total assets recorded an increase of 3.29 percent since the beginning of the year to Rp7.87 trillion. Total equity decreased 4.28 percent to Rp4.04 trillion and liabilities increased 66.80 percent to Rp1.06 trillion.

The main reason for the decline in revenue was the correction in revenue from construction services, which fell 42.66 percent year-on-year (yoy) to Rp648.86 billion and hotel revenues which fell 54.08 percent yoy to Rp69.96 billion.

Meanwhile, SSIA's property business segment revenue fell by around 16.2 percent. For the property segment, Erlin pointed out that the company's industrial land demand consistently comes from the automotive, logistics, food, chemical and consumer goods industries. In addition, there is also an increase in demand from the data center sector and other high-tech industries.

SSIA is optimistic that this industrial estate segment will recover in line with more expansive economic growth after the pandemic. Meanwhile, the construction segment is run by a subsidiary of SSIA, namely PT Nusa Raya Cipta Tbk. posted a 42.1 percent decline in revenue on an annual basis to Rp656.7 billion.

Furthermore, the hospitality segment, which is still constrained by travel restrictions, has resulted in less than optimal revenue.