Jakarta (22/06) – Property developer PT Intiland Development Tbk held the Annual General Meeting of Shareholders (AGMS) for the financial year ending 31 December 2020, on Tuesday (22/06), at Intiland Tower Jakarta. Like in the previous year, this time the GMS was held both physically and online by following the health protocols set by the government in order to prevent further spread of Covid-19.

Intiland’s Capital and Investment Management Director, Archied Noto Pradono, stated that the Company’s Shareholders approved all the agendas discussed at the AGMS. The agenda of the AGMS included the approval of the Company’s Annual Report and ratification of the Company’s Balance Sheet and Profit and Loss Statements for the financial year ending on 31 December 2020, appointment of an Independent Public Accountant, approval to amend 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 the determination of the use of the Company’s net profit for the financial year ending 31 December 2020.

“We express our appreciation to the shareholders who have approved all the agendas of the AGMS and the strategic plans that we will carry out to enhance the value of the company,” said Archied.

Considering the conditions and challenges facing the Company going forward, the Company allocated Rp74.8 billion of its net profit of as retained earnings and the remaining Rp2 billion as mandatory reserves.

Archied explained that the Covid-19 pandemic, ongoing since March 2020, had given a significant impact on the wider economy, including the national property sector. This condition was also directly responsible for the decline in the Company’s business performance, mainly due to the drop in sales. The property market experienced a contraction owing to lower demand and declining property purchases from the public. Consumers and property investors had taken to delaying their purchasing decisions and were instead waiting for a change in the situation.

Facing this situation, the Company has determined a number of strategic steps as an effort to maintain its business operations. The Company had to prioritize measures to improve sales performance while maintaining financial stability and prudent cash flow management.

“Our future business prospects remain tremendously challenging, due to the weakening economy in this Covid-19 pandemic. We shall take some key steps to keep the Company’s operations, create financial stability, and boost sales performance,” he added.

Facing such an unfavorable situation, the Company strives to maintain its performance and stay focused on implementing the four main growth strategies. These four strategies are organic growth, acquisition opportunities, strategic cooperation through joint ventures or joint operations, as well as capital and investment management.

The Company has observed changes in the business patterns of the property market which have become more optimistic since the beginning of 2021. Public and consumer demand for property products has begun to grow. This phenomenon has also been seen in a number of the Company’s project developments, particularly in the landed housing market.

This change could also be seen from the sales performance in the first quarter of this year. The Company recorded marketing sales of Rp310 billion, an increase of 166% compared to the first quarter of 2020. This number does not include contribution from recurring income, which reached Rp176 billion, 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 Rp222 billion or 71.5%. The rest comes from sales from the industrial estate segment with a contribution of 19.2% and mixed-use at 9.4%,” said Archied.

Property Market’s Prospect

Archied projected that the property industry will continue to adapt and look for turning points to achieve growth again. All property industry players should be able to adapt and find innovative ways to deal with market and consumer dynamics.

Although the prospect of the property market in the future is still full of challenges, the Company is optimistic that the situation and conditions will gradually improve. Currently, it provides a fairly good opportunity for consumers to make purchases and invest in property when the market is down and there are many incentives for ease of purchase from developers and the government.

“Right now is the best momentum for consumers and investors to purchase property. The property market is in a positive trend in line with increasing public demand and government policy incentives,” claimed Archied.

Archied assessed that the policy incentives launched by the government had a remarkable impact on the property sector. This stimulus not only affected the sale of property products whose value was included in the incentive criteria, but also affected other property products. The policy was considered capable of providing a psychological effect on the community by regenerating confidence in purchasing property.

This year, the Company continues to strive to maintain its business performance and boost sales. New developments are focused on ongoing projects as well as increasing sales from product inventory. The Company currently has sufficient inventory of ready-to-occupy units in a number of high-rise projects, such as 1Park Avenue, Regatta, Graha Golf, Praxis, The Rosebay, Sumatra36 and Aeropolis apartments.

In light of the current situation and conditions, the Company tends to take a conservative step in deciding any new project developments, especially projects in the mixed-use & high-rise segment. However, the Company continues to consider every expansion opportunity by carefully calculating every risk and market absorption.

This year, the Company successfully launched several new developments in a number of projects. Some of these new developments include the launch of DUO cluster in Talaga Bestari residential estate, Sierra cluster in Serenia Hills project, and three new clusters in Graha Natura residential estate, Surabaya.

As for new projects, the Company has started the development of Tierra integrated mixed use area in the city of Surabaya. The new development, which began with the launch of Tierra SOHO commercial product, was a success and received a strong interest from the public.

“We believe that market demand and purchasing power is still there. So the challenge is to be observant in capturing needs and being able to provide innovative products that are able to cater to people’s needs,” said Archied.

In order to capitalize on this market niche and meet its needs, the Company recently launched a special program called Click & Stay. Click & Stay is a marketing campaign program whose aim is to make it easy for the public and consumers to own the best Intiland properties.

The program, held from June 21 to the end of August 2021, offers a variety of special promos, as well as a series of talk shows with competent speakers and experts in their fields. Followed by 18 projects located in Jakarta, Tangerang, and Surabaya, Click & Stay also provides virtual property exhibitions that provide a variety of products, ranging from housing, apartments, low-rise residential, offices, commercial, SOHO, to warehousing. ***