Intiland, Property Developer Owned By Conglomerate Hendro Gondokusumo Earns IDR 2.89 Trillion In Operating Revenues In 2020

Illustration. (Photo: Doc. Intiland)

JAKARTA - Property developer PT Intiland Development Tbk reports the results of its financial performance in 2020. In the midst of pressure and the decline in the property market due to the COVID-19 pandemic, the company with the stock code DILD was quite successful in maintaining and maintaining business performance throughout last year.

Based on the annual financial report ending December 31, 2020, quoted on Tuesday, June 8, the company owned by conglomerate Hendro Gondokusumo posted an operating income of IDR 2.89 trillion. This number increased by IDR 154.3 billion or 5.3 percent compared to the 2019 achievement of IDR 2.74 trillion.

Intiland's Director of Capital Management and Investment, Archied Noto Pradono, said that the increase in operating income in 2020 was driven by increased sales recognition from the mixed-use and high-rise development segment which has completed its construction period.

The Company currently has a portfolio of mixed-use and high-rise projects located in a number of areas, including Jakarta, Tangerang and Surabaya.

"The increase in operating income was triggered, among others, by the recognition of sales from the development of mixed-use and high-rise projects that have been completed, such as the Graha Golf and The Rosebay condominiums in Surabaya as well as the sale of stock units in a number of apartment projects such as 1Park Avenue," said Archied. .

Archied explained that development income still provides the largest contribution, reaching IDR 2.3 trillion or 79.6 percent of the total. The value of this development revenue increased by 8.2 percent compared to 2019 which was Rp. 2.1 trillion.

The next source of operating income comes from recurring income which contributes IDR 589.1 billion or contributes 20.4 percent of the total. Operating income from this segment posted a 5.7 percent decrease compared to the 2019 achievement which was valued at Rp623.1 billion.

The mixed-use & high-rise development segment recorded the largest contribution reaching Rp1.8 trillion, or 63.4 percent. This contribution increased by 39.4 percent compared to the 2019 achievement which was recorded at Rp1.1 trillion.

The next contributor came from the residential area development segment of Rp432.8 billion or 14.9 percent of the total. Revenue from this segment decreased by more than half compared to 2019's revenue of Rp942 billion.

The industrial estate development segment contributed Rp. 36.7 billion or 1.3 percent. This number has decreased compared to last year which still contributed Rp63.4 billion.

Archied explained that the housing development, industrial estate, and recurring income segments decreased on average last year. The COVID-19 pandemic has directly created pressure on the company's sales performance, along with the consumer's decision to postpone the purchase of property products.

"The absorption of the housing market has also been hit by the declining purchasing power of consumers and the reluctance to invest during the pandemic," said Archied.

In terms of profitability performance, Intiland recorded a gross profit in 2020 of Rp1.18 trillion, a slight increase compared to 2019 of Rp1.13 trillion. The company's operating profit also increased 29 percent to Rp778.4 billion, compared to 2019 worth Rp603.5 billion.

Intiland's net profit was recorded at IDR 76.8 billion, or a 69 percent decrease compared to 2019 of IDR 251.4 billion.

Intiland is engaged in the construction and rental of office buildings. The Company started its commercial operations on October 1, 1987 with the main activities in the real estate industry.

The owner, tycoon Hendro Gondokusumo, is the 74th richest person in Indonesia according to Forbes as of December 2020. Hendro has a wealth of US$510 million, or around Rp7.4 trillion.