Intiland GMS Decides All Profits In 2019 As Retained Profits

Illustration. (Photo: Intiland)

JAKARTA - Property developer PT Intiland Development Tbk held an Annual General Meeting of Shareholders (GMS) for the financial year ending December 31, 2019. Shareholders have approved the entire agenda of the Annual GMS held by Intiland.

Intiland's Director of Capital Management and Investment, Archied Noto Pradono, explained that at the Annual GMS, Intiland proposed six agendas to get approval from shareholders. The six agendas include Approval of the Annual Report and Ratification of the Balance Sheet and Profit and Loss Calculation for the financial year ending 31 December 2019, the appointment of a Public Accountant Firm, and determination of the remuneration of the Board of Commissioners and Directors.

Apart from this agenda, the shareholders have also approved changes in the composition of the Board of Directors and the Board of Commissioners as well as stipulating the use of net profit of Rp251.4 billion.

"We express our appreciation to all shareholders who have approved the entire agenda for the Annual GMS proposed by the management," Archied said in his statement, Wednesday, July 15.

In the agenda of changing the composition of the Board of Directors and Board of Commissioners, the Company's Deputy President Director Sinarto Dharmawan has assumed a new position as President Commissioner. The membership of the Board of Commissioners was also strengthened by the appointment of Friso Palilingan as an Independent Commissioner.

Friso Palilingan previously served as a member of the Company's Audit Committee since 2013. He has long experience in finance and accounting. This holder of a master's degree in accounting from the Kwik Kian Gie School of Business serves as a Fellow at PKF Indonesia and a member of the Financial Accounting Standards Board at the Indonesian Institute of Accountants.

Considering the situation and conditions due to the COVID-19 pandemic and this year's business plan, Intiland has decided not to distribute dividends on the profits obtained in 2019. All net profit earned will be used as retained earnings of IDR 249.4 billion and the remaining IDR 2 billion as reserves. Required.

Archied acknowledged that the property industry is one of the sectors most affected by the COVID-19 pandemic. Many consumers and property investors tend to be waiting for conditions to improve and prefer to postpone purchases.

"Almost all developers face quite tough challenges, including the impact of the COVID-19 pandemic. Although the purchasing power of the market remains, consumers choose to delay purchases or investments. Property sales are still dominated by the end user market, especially in the middle to lower segment," he said. Archied.

2020 First Quarter Performance

Amid the challenges in the property industry, Intiland has managed to maintain its business performance. Until the end of the first quarter of this year, Intiland posted an operating income of IDR 830.6 billion, or a decrease of 6.4 percent compared to the first quarter of 2019 valued at IDR 887.6 billion. This decline was mainly due to lower revenue recognition from the mixed-use & high rise segments and residential areas.

Development income was recorded as the largest contributor, reaching Rp546.8 billion or 82.3 percent of the total. The proceeds came from the mixed-use and high-rise development segment worth IDR 455.1 billion and a residential area of IDR 91.7 billion.

"In the first quarter of this year, we also sold a land area of 3.2 hectares in Surabaya for Rp. 58.3 billion. This land is included in the inventory category and is not a major asset that will be developed in the near future," said Archied.

Intiland also received operating income from recurring income of IDR 159.6 billion or 17.7 percent of the total. Operating revenues from this segment increased by 1.6 percent compared to the same period last year amounting to IDR 157.1 billion.

In addition, Intiland also received derivative income of Rp. 124.1 billion. This interest income is the impact of the adoption of the new Statement of Financial Accounting Standards which took effect in early 2020.

Intiland recorded an operating profit of IDR 234.9 billion, an increase of 27.6 percent compared to the first quarter of 2019. This increase has boosted net profit of IDR 84.4 billion or an increase of 74.4 percent compared to the first quarter of last year of IDR 48.4 billion. .