IKN Nusantara Has A Positive Impact, BSBK's Net Profit Skyrockets 203 Percent In Semester I 2024

Photo: Doc. PT Wulandari Bangun Laksana Tbk (BSBK)

JAKARTA - PT Wulandari Bangun Laksana Tbk (BSBK) managed to record an encouraging financial performance in mid-2024. In the first half of this year, the Company posted sales and operating income of IDR 170.7 billion. This figure is up 9.71 percent compared to the same period last year, which amounted to IDR 155.6 billion.

This increase in performance was driven by a surge in apartment sales which reached 51.58 percent compared to 2023. In addition, the increase in operating income also contributed greatly. This was mainly supported by two Company-owned shopping centers. Mall E-Walk and Mall Pentacy experienced an increase in occupancy rate, each reaching 97.91 percent and 82.82 percent in the first half of 2024, compared to 95.80 percent and 79.26 percent in the same period last year.

External factors such as the development of the State Capital (IKN) of the Archipelago also contribute to improving BSBK's financial performance. The positive impact of the development of IKN Nusantara, among others, is being able to encourage economic growth in the city of Balikpapan, East Kalimantan (Kaltim).

Based on data from the East Kalimantan Diskominfo, in April 2024 there was a surge in domestic air passengers by 24.75 percent (yoy), international air passengers 40.98% (yoy), and domestic sea transportation passengers 30.64 percent (yoy). Total passengers reached 378.27 thousand that month.

The high flow of immigrants from outside the city to Balikpapan related to IKN development has caused increased housing needs. Including apartments offered in the BSBK area, both for purchase and lease. The BSBK area with complete facilities is a plus point and an attraction for newcomers and investors to buy, rent, or invest through the purchase of apartment units in the area.

The Company's increase in sales and operating income boosted operating profit in the first semester of 2024. Operating profit reached IDR 71.8 billion, an increase of 43.45% compared to the same period last year, which was only IDR 50.1 billion.

In terms of profits, the Company managed to increase net profit drastically to IDR 39.8 billion in the first semester of 2024. This achievement increased by 203.8 percent, from net profit for the same period the previous year of around IDR 13.1 billion.

"This increase in net profit cannot be separated from external and internal factors of the Company. From the external side, the current business conditions have improved much compared to previous years. The acceleration of IKN development has made more migrants visit Balikpapan, because this city is the closest buffer for IKN, so demand for housing increases. From an internal perspective, the Company has also succeeded in making significant efficiency in the cost of revenue," explained Daniel Wirawan, Director of the Company.

In terms of balance, the company's total assets reached IDR 2.516 trillion in the first semester of 2024, up from IDR 2.494 trillion at the end of 2023. The company also managed to reduce total debt to IDR 642 billion from IDR 661 billion last year. Meanwhile, total equity increased to IDR 1.725 trillion compared to IDR 1.685 trillion at the end of 2023. This increase was due to an increase in the Company's profit balance in the first semester of 2024.

In the second half of 2024, BSBK plans several strategic steps to improve performance. In the mall sector, the Company will include new tenants who have visitor attractions such as Sushi Tei, Victoria's Secret, Bath & Body Works, MLB, and other tenants who are expected to enliven the BSB area. In addition, the Company is in the approach stage with well-known brands such as Coach, Lacoste, Onitsuka Tiger, and Kate Spade.

Another strategic step is in the area development sector. BSBK plans to accelerate project development to take advantage of opportunities from the development of the new capital city in East Kalimantan. In addition, to increase visits and provide the best experience and services to visitors, the Company plans to renovate facilities in malls to make them look more exclusive and comfortable for visitors.