Intiland, A Property Developer Owned By The Conglomerate Hendro Gondokusumo Has 4 Strategies To Face The Pandemic Situation

Illustration. (Photo: Doc. Intiland)

JAKARTA - Property developer PT Intiland Development Tbk held the Annual General Meeting of Shareholders (GMS) for the financial year ending December 31, 2020, at Intiland Tower Jakarta, Tuesday, June 22. Like last year, the GMS was held both offline and online by following the health protocols set by the government in order to prevent the spread of COVID-19.

Intiland's Director of Capital and Investment Management Archied Noto Pradono revealed that the Company's Shareholders have approved all the agendas discussed at the GMS. The agenda of the Annual GMS includes approval of the Annual Report and ratification of the Company's Balance Sheet and Profit and Loss Calculation for the financial year ending on December 31, 2020, the appointment of an Independent Public Accountant, approval to make adjustments to the Company's Articles of Association in accordance with Financial Services Authority Regulations, determination of remuneration for the Board of Commissioners and Board of Directors and determination of the use of the Company's net profit for the financial year ending  December 31, 2020.

"We express our appreciation to the shareholders who have approved the entire agenda of the GMS and the strategic plans that we will implement to increase the value of the company", said Archied.

Considering the conditions and challenges facing the company going forward, Intiland allocated a net profit of IDR 74.8 billion as retained earnings and the remaining IDR 2 billion as mandatory reserves.

Archied explained that the COVID-19 pandemic that had occurred since March 2020 had a significant impact on the economy at large, including the national property sector. This condition also directly caused a decline in the company's business performance, mainly due to the drop in sales figures. The property market experienced a contraction due to lower demand and property purchases from the public.

Consumers and property investors tend to take the attitude of delaying purchases and waiting for a change in the situation. Facing this situation, Intiland has determined a number of strategic steps as an effort to maintain business operations. The Company needs to prioritize measures to improve sales performance while maintaining financial stability and prudent cash flow management.

"The future business prospects are still very challenging due to the weakening economy due to the COVID-19 pandemic. We need to take priority steps to keep the company's operational wheels turning, creating financial stability, and boosting sales performance", he further said.

Facing this unfavorable situation, Intiland is trying its best to maintain the company's performance and stay focused on implementing its four main growth strategies. The four strategies are organic growth, acquisition opportunities, carrying out strategic cooperation through joint ventures or joint operations, and managing capital and investment.

The Company has observed changes in the pattern of the property market which has become more optimistic since the beginning of 2021. "Public and consumer demand for property products have begun to grow. These symptoms also occur in a number of the company's project developments, especially in the landed housing market", said Archied.

This change can also be seen from the sales performance in the first quarter of this year. The company was recorded to have managed to record marketing sales of IDR 310 billion or an increase of 166 percent compared to the first quarter of 2020.

This amount does not include contributions from sustainable income which reached IDR 176 billion which came from the investment property segment, such as office rental and management of golf courses and sports facilities.

"Sales from the residential area segment contributed the largest amounting to IDR 222 billion or 71.5 percent. The rest came from sales from the industrial estate segment with a contribution of 19.2 percent and mixed-use only 9.4 percent", said Archied.

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

The owner, Hendro Gondokusumo, is the 74th richest person in Indonesia according to Forbes as of December 2020. Hendro has a wealth of USD 510 million, or around IDR 7.4 trillion.