Destroyed, Property Developer Losses Owned By The Conglomerate Mochtar Riady Almost IDR 13 Trillion In 2020

Meikarta. (Photo: Doc. Between)

JAKARTA - Two property development companies owned by Lippo Group, its performance was destroyed in 2020. The two companies in question are PT Lippo Karawaci Tbk (LPKR) and its subsidiary, PT Lippo Cikarang Tbk (LPCK).

Quoted from the financial report published on the Indonesia Stock Exchange page, Tuesday, May 11, companies owned by conglomerate Mochtar Riady suffered net losses over the past year.

Lippo Karawaci recorded a net loss attributable to owners of the parent entity of IDR 8.89 trillion throughout 2020. The loss jumped significantly 349 percent from 2019, which also recorded a net loss of IDR 1.98 trillion.

LPKR's revenue also decreased 2.87 percent to IDR 11.96 trillion from IDR 12.32 trillion a year earlier.

The reason for this big loss, is due to the increasing elimination of the value of inventory, from the original IDR 443.12 billion at the end of 2019, rising to IDR 3.24 trillion by the end of 2020. In addition, losses on the decrease in the fair value of investments also increased to IDR 1.28 trillion from the original only IDR 6.99 billion.

In addition, interest expense on rental liabilities increased significantly to IDR 439.74 billion from the previous period of only IDR 27.53 billion. Interest expense on bank loans also increased to IDR 171.68 billion from IDR 32.70 billion previously.

Lippo Cikarang's performance was also three money with the parent. LPCK recorded a net loss of IDR 3.65 trillion throughout 2020, soaring from the previous year in which Lippo Cikarang still recorded a net profit of IDR 310.91 billion.

This loss occurred due to an increase in the share of investment losses in the associate entity amounting to IDR 1.66 trillion from the previous only IDR 44.95 billion. In addition, losses from the decrease in the fair value of investments also increased to IDR 1.21 trillion from IDR 14.23 billion in the previous year.

Despite the losses, Lippo Cikarang's revenue still grew 8.82 percent to IDR 1.84 trillion from IDR 1.69 trillion a year earlier.

As a result, if calculated, the losses of the two Lippo Group property issuers reached IDR 12.54 trillion in 2020.