Seeing The Success Of Indonesian Paradise Property Maintained Facing 2 High Cliffs: Pandemic And Threats Of Reduction

Photo: Doc. Indonesian Paradise Property

JAKARTA - Property developers in the country are faced with two high cliffs, a pandemic and a recession. In the midst of a pandemic situation that has not yet completely ended, a "new" challenge is now being published, namely a recession that is predicted to occur in 2023.

Even so, there are some developers who are still able to successfully run a business during the COVID-19 pandemic situation. This is certainly a good capital to look at business in 2023 more optimistically.

For example, developers of PT Indonesian Paradise Property Tbk (INPP). The company is also faced with the difficult situation of the COVID-19 pandemic which has hit all business sectors in the country.

"Regarding the recession, we have to believe and confidence with our macroeconomic power. If I look at it, retail and hotels are not too affected by recession. Why? Because we built it as long as our cash flow was ready and strong there was no problem," said the President Director. & CEO of INPP, Anthony Prabowo Susilo, some time ago.

"And in our opinion, Indonesia is extraordinary. In Europe, it may be a recession, but Indonesia is extraordinary that our government can find loopholes so that the market continues to grow and develop," he added.

With various strategies, innovations, and anticipations made by INPP, the company can not only survive but quite successfully record business performance growth. Just so you know, when there was an increasing new wave of pandemics, INPP was still able to record revenues in 2021 of IDR 427 billion, up 7.71 percent from the previous year of IDR 367 billion.

This increase was driven by maintained business performance, especially those from the hotel segment and property sales even though this segment was the most affected by the pandemic. Throughout 2021, revenue from recurring revenue can still be a mainstay and in the future several projects have been prepared which will later become a momentum for companies to improve performance from property sales.

"We remain optimistic and we enter the market with measurable products. We have also prepared a strong cash flow so that our commitment to completing the project can run well whatever the conditions are," said Anthony.

Anthony further explained that the management always makes various efforts to regulate cost and cash flow so that it is maintained in the midst of a situation like this by regulating healthy cash balance and maintainability.

The implementation of the right strategy is also reflected in business activities during the third quarter of 2022, where INPP managed to achieve sales of IDR 540.5 billion from this year's target of IDR 938.7 billion. INPP also managed to achieve a operating profit of IDR 48.6 billion from this year's target of IDR 138 billion.

In the midst of the shadow of a recession, INPP is currently preparing a future project. The company will build a property with the concept of Mixed Use, where in one location there are three pillars, namely commercial, hospitality, and residence.

"One of our strengths is retail capacity. So this INPP future project brings three capabilities to one, namely building mixed use, where in one location there is a very creative retail development and can have an impact on the surrounding community," explained Anthony.

In 2023, INPP will carry out five to six developments and one of them is Antasari Place. The privilege of Antasari Place, said Anthony, has a green open space and the interior will be upgraded to a more luxury.

According to Anthony, this is indeed the company's strategy in improving the quality of projects that are currently working on. In addition, Antasari Place is claimed to be the most suitable for millennials.

Antasari Place is located in a strategic location, designed for a single family, and also suitable for young professionals who need a place to live. His party also made a scheme that bridges so that millennials can buy property at Antasari Place.

"So we gave a scheme so that they can pay off their DP first for several times. After the DP is achieved, it can be continued with KPA. So, we are also assisted by several state-owned and private banks who work together to provide credit installment ceilings," said Anthony.

As for the increase in interest rates, INPP management provides solutions related to the trend of rising interest rates. For example, with DP which previously had to be 20 percent, it was used as just 5-10 percent.

"For Antasari place, the unit is not too big, so the installments are also more affordable," said Anthony.

INPP will also carry out development in Bandung. Meanwhile, in Makassar, the company built a mixed use between high-end housing at a price of IDR 2-5 billion.

"We have started orbiting this year and next year we will be handover the Hyatt Place hotel. This is kind of his younger brother Grand Hyatt, this will be the first Hyatt Place in Indonesia that we bring to Makassar," he said.

Meanwhile, in Makassar City, he continued, INPP is also planning to build development mix and the plan is that next year it will also release another product, namely in Balikpapan City. Likewise in Semarang City.