COVID-19 Increases Lippo Karawaci's Loss By IDR 2.34 Trillion

Illustration. (Photo: Unsplash)

JAKARTA - The property business unit owned by the Riady family conglomerate, PT Lippo Karawaci Tbk, suffered a loss in the current period attributable to the owner of the parent entity amounting to Rp2.34 trillion. This value has swelled from a net loss of Rp1.72 trillion in the September 2019 period.

This was conveyed by the issuer coded LPKR in an information disclosure on the Indonesia Stock Exchange (IDX) website, Monday, November 2. It was stated that the company had a loss, although from the income side it had increased.

Lippo Karawaci's revenue in the first nine months of 2020 reached IDR 8.58 trillion. This value edged up 0.24 percent year on year (yoy) compared to the same period in the previous year, IDR 8.56 trillion.

The details of why the company suffered a loss were, LPKR's cost of revenue was IDR 5.26 trillion, so that the gross profit reached IDR 3.22 trillion, up from the previous IDR 3.19 trillion.

However, due to operating expenses of IDR 2.97 trillion, LPKR posted an operating loss of IDR 622.88 billion as of September 2020. Furthermore, the company had a net financial burden of IDR 1.17 trillion, expenses from associated entities IDR 1.18 trillion, and IDR 200 tax expense. , 53 billion. As a result, Lippo Karawaci had to suffer a loss of IDR 2.34 trillion.

Previously, Indonesia Property Watch (IPW) stated that the COVID-19 pandemic was still a major scourge that had severely impacted the economy. Decreasing purchasing power occurs in all segments of society.

Indonesia is expected to enter a recession at the end of Q3 2020. Economic contraction of 5.32 percent has occurred in Q2 2020.

This recession wave will be very dangerous if it hits the banking sector. If the financial and banking sectors experience a crash, it means that we will be faced with a multi-dimensional recession in addition to the health crisis due to the pandemic.

This must be anticipated immediately because currently the restructuring of loans in banks has reached IDR857 trillion, most of which are in danger of default if there is no relaxation policy by the end of the year. With this series of worries, the property sector is faced with unfavorable conditions.