DUTI, ITC Owner Who Is Also A BSD Subsidiary Of Conglomerate Eka Tjipta Widjaja, Earns IDR 701 Billion In Operating Income In Semester I 2021

Illustration. (Photo: Doc. Sinar Mas Land)

JAKARTA - PT Duta Pertiwi Tbk (DUTI), a subsidiary of PT Bumi Serpong Damai Tbk (BSDE), as well as a member of the Sinar Mas Land property group, for the first six months managed to record operating revenues of IDR 701.27 billion, close to last year's figure of IDR 717.76. billion.

This consolidated revenue comes from DUTI's five revenue segments, namely land sales, residential houses and shophouses, rentals, hotels, recreation areas, and others.

The issuer, which is the pioneer of a mixed-used strata title shopping center with the ITC brand, received the highest revenue contribution from the land, residential and shop-house sales segment, which was IDR 398.32 billion, growing 10.59 percent, compared to last year's IDR 360.19 billion. Even 52 percent of which comes from residential sales.

The residential area offered has received a positive response from the community. The sales were sourced from the Kota Wisata project, Grand Wisata, Banjar Wijaya Park, Kota Bunga and others.

The government's policy to provide VAT relief and exemption until the end of December 2021 also gives positive sentiment to prospective buyers, both for ready-to-occupy houses with prices up to IDR 2 billion for 100 percent VAT free and prices above IDR 2 billion to IDR 5 billion for 50 percent VAT relief.

The rental segment was the second-largest revenue contributor, amounting to IDR 232.20 billion, down 15 percent compared to last year's IDR 273.46 billion and the other segment weakening 5 percent to IDR 66.08 billion compared to last year's IDR 69.49 billion.

"We always strive to strengthen the composition of revenue, both sales revenue and recurring revenue. We have achieved this through a portfolio diversification strategy so that we do not depend on one particular segment, such as ITC alone. However, we have various segments such as the housing, superblocks, office buildings, and shopping centers as well as hotels and recreation arenas", explained DUTI President Director, Teky Mailoa in a Public Expose Live held by the Indonesia Stock Exchange, Tuesday, September 7.

In addition to diversifying its portfolio by-product, the issuer, whose 88.56 percent stake is owned by BSDE, also diversifies its portfolio by region. Currently, DUTI projects are spread across three major cities in Indonesia, namely Jabodetabek, Semarang, and Surabaya.

In the Jabodetabek area, DUTI owns and manages several property projects such as Sinarmas Land Plaza Tower 2 & 3, Grand Wisata, City Tourism, ITC superblock, Tourism Legend, Aerium Apartments, Southgate TB Simatupang, and others.

While in Semarang has DP Mall and Rooms Inc. Shifted to Surabaya, owns Klaska Residence, ITC Surabaya, Benowo and Tanjung Sari (under development plan).

"Through the distribution of products and regions, we strive to maintain a 50:50 proportion between sales revenue and recurring revenue. We are diversifying our portfolio both organically and inorganically", said Teky.

One example of DUTI's success in investing can also be seen from the Other income account. In the second quarter of 2021, DUTI recorded other income of IDR 154 billion. This figure is sourced from the management's strategy to increase share ownership in the subsidiary, namely PT Itomas Kembangan Perdana.

With the addition of other income, Net profit attributable to owners of the parent entity jumped by 81.37 percent to IDR 285.44 billion compared to last year's achievement (YoY) of IDR 157.38 billion.