Intiland's Shareholders Approved The 2022 Annual GMS Agenda

Intiland's board of directors. (Photo: Doc. Intiland)

JAKARTA - Property developer PT Intiland Development Tbk (DILD) held the Annual General Meeting of Shareholders (GMS) for the financial year ending 31 December 2021, in Jakarta, on Wednesday 20 July 2022.

At the Annual GMS which was held both physically and online, the Shareholders have given their approval to the entire agenda of the Annual GMS proposed by the Company.

This Annual GMS discusses five agendas which include approval of the Annual Report and ratification of the Company's Balance Sheet and Profit and Loss Calculation for the financial year ending December 31, 2021, appointment of an Independent Public Accountant and determination of remuneration for the Board of Commissioners and Board of Directors.

Other agendas for the Annual GMS are changes to the composition of the Board of Directors and Board of Commissioners and adjustments to Article 3 of the Company's Articles of Association in accordance with the 2020 Indonesian Standard Classification of Business Fields (KBLI).

Intiland's Director of Capital and Investment Management Archied Noto Pradono expressed his appreciation to the Shareholders of the Company who have given their approval to the entire agenda of the Annual GMS. In the midst of challenges that have not yet recovered consumer buying interest, the Company remains optimistic that the property market condition this year will be better.

“This year the property market is still quite challenging amid signs of a global economic contraction. But we are quite sure, the trend of property sector recovery will continue and can be a momentum to improve business performance this year," said Archied after holding the Annual General Meeting of Shareholders.

The shareholders have approved the change in the composition of the Company's Board of Directors and Board of Commissioners with the appointment of Moedjianto Soesilo Tjahjono as Deputy President Director of the Company. Apart from the addition of members of the Board of Directors, there are no other changes to the Board of Directors and Board of Commissioners of the Company.

“The addition of members of the Board of Directors will strengthen Intiland's management structure for long-term performance improvement. Mr. Moedjianto has the competence and long experience in the property, marketing, and hospitality industries," he said further.

Archied acknowledged that the COVID-19 pandemic had a significant impact on the national property industry over the past two years. This incident affected the Company's operations and performance, particularly the decline in public interest and purchasing power in general.

The Company continues to strive to maintain business operations to maintain positive performance growth over the last two years. Maintaining sales performance growth is a top priority in addition to ensuring the project development process runs smoothly.

The company believes that the property market will gradually recover this year. Public interest in buying and investing in property began to grow again, marked by the sales trend in the last six months.

Archied explained that the Company has set important priorities to be carried out this year as an effort to maintain business growth. In addition to still focusing on the development of existing projects, the Company is still preparing new project development plans which are ready to be launched at any time.

"We continue to monitor the dynamics of the property market and the direction of developments in the national economy. We are still preparing for the launch of new projects, especially in the mixed-use & high-rise segment, but we are waiting for the best momentum and considering market absorption," said Archied further.

In the first half of this year, the Company launched several new developments in ongoing projects. These new developments include the Aurora commercial area at Graha Natura and the development of the new industrial area project Batang Industrial Park located in Batam, Central Java.

The Company continues to strive to maintain the company's performance and remains focused on carrying out the 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.

Sales Performance

In the first half of this year, the Company posted marketing sales of Rp803 billion. Sales from the residential area development segment contributed the most to Rp479 billion or 60 percent of the total. The next contributors came from the Industrial Estate development segment which recorded marketing sales of IDR 214 billion or 26 percent and the Mixed-Use & High Rise development segment of IDR 110 billion or 14 percent.

Sales from projects located in Surabaya contributed to marketing sales of Rp422 billion or 53 percent of the total. The remaining Rp380 billion or 47 percent came from sales in projects located in Jakarta and Tangerang.

"We continue to pursue sales targets in the second half through the launch of new products and the development of new projects," said Archied further.

In addition to obtaining marketing sales, the Company managed to maintain performance stability from sustainable income or recurring income. In the first half of this year, the Company recorded a sustainable income of Rp. 338 billion, an increase compared to the same period last year of Rp. 333 billion.

"The recurring income contribution comes from office rentals, such as the South Quarter and Intiland Tower, as well as the management of facilities and infrastructure, as well as golf and sports facilities located in Jakarta and Surabaya," said Archied.

This year, the Company seeks to increase sales of industrial land and warehousing products. The level of demand for industrial land and warehousing properties tends to increase quite rapidly in recent times.

Anticipating this trend, the Company has a number of project portfolios for industrial and warehousing land. In addition to developing two industrial areas namely Batang Industrial Park and Ngoro Industrial Park in Mojokerto, East Java, the Company also has a warehouse portfolio of Aeropolis Techno Park, which is located near Soekarno Hatta International Airport in Tangerang.

Archied projects that the property industry will continue to adapt and look for turning points to return to growth. The Company continues to make maximum efforts to maintain long-term business growth. New developments are focused on ongoing projects as well as increasing sales from inventory or product stock.