BSD, Property Developers Owned By Conglomerate Eka Tjipta Widjaja Set Aside 2021 Profits Of IDR 1.35 Trillion As Retained Earnings

Photo: Doc. Sinar Mas Land

JAKARTA - The property developer from Sinar Mas Land owned by conglomerate Eka Tjipta Widjaja, PT Bumi Serpong Damai Tbk (BSDE) received approval from shareholders to set aside Rp1.35 trillion for retained earnings and Rp2 billion as a reserve fund.

This was agreed at the General Meeting of Shareholders (GMS) which was held on June 14, 2022. Director of Bumi Serpong Damai Hermawan Wijaya said, with this decision, it will increase BSDE's capital structure to develop property projects in 2022.

"In addition to risk mitigation, with the shareholder's decision, the Company has solid capital fundamentals to guarantee funding and completion of managed property projects," said in a press release, quoted Monday, June 20.

BSDE currently has a real estate inventory of Rp5.73 trillion, which consists of Land and Buildings ready for Sale and Buildings Under Construction.

Inventories in the Land and Buildings Ready for Sale category until the end of March 2022 were recorded at Rp3.21 trillion. The BSD City and The Element projects are listed as projects with the largest inventories, namely Rp. 2.01 trillion.

Then the projects with the next largest stocks of Land and Buildings Ready for Sale are Klaska Residence Rp. 286.19 billion and South Gate Rp. 239.71 billion. Meanwhile, the Building Under Construction category has an inventory of IDR 2.52 trillion.

Meanwhile, the BSD City and The Element projects are still the projects with the highest contribution, which is IDR 788.32 billion. Hermawan explained, the amount of inventory illustrates BSDE's potential for future income prospects.

"We continue to strive to increase the production of quality real estate to meet high consumer demand," said Hermawan.

In addition, the recovery of community and economic activities during the transition from a pandemic to an endemic makes BSDE management optimistic. This recovery is considered to encourage economic growth which will lead to an increase in people's purchasing power.

Hermawan believes that the pre-sales target of IDR 7.7 trillion by the end of 2022 will be achieved. Moreover, government support in the form of VAT relief incentives will continue this year.