General, Press Release

Intiland Distributes Rp102.7 Billion Dividends

Jakarta, (09/06) – Shareholders of PT Intiland Development Tbk positively responded to the management’s proposal to distribute dividends worth Rp 102.7 billion or Rp 10 per share. The dividends to be distributed is worth 23.9 percent of the total net income the company booked in the 2014 fiscal year, or Rp 429.2 billion.

The proposal to distribute the dividends have gotten a nod in the company’s Annual General Meeting of Shareholders held on June 9, 2015. The rest of the net income is to be allocated as retained earnings (Rp 324.5 billion) and the rest Rp 2 billion is set as mandatory reserves. At the GMS, shareholders also received and approved the company’s annual financial statement, ratification of the company’s balance and Intiland’s profit-loss calculation for the fiscal year ending on December 31, 2014.

Also at the GMS, shareholders accepted the resignation of Moedjianto Soesilo Tjahjono from the company’s Board of Directors and also approved the new management structure of the company. There was no replacement for the member of the Board of Directors so that the board retains the number of members at seven. They are Hendro S. Gondokusumo as President and Chief Executive Officer; Suhendro Prabowo, Vice President and Chief Operating Officer Jakarta; Sinarto Dharmawan, Vice President and Chief Operating Officer Surabaya; Utama Gondokusumo; Archied Noto Pradono; and Ricky Holil as Directors, as well as Irene P. Rahardjo as Independent Director.

At the company’s Extraordinary General Meeting of Shareholders, shareholders also approved the revision of the company’s statutes to conform to the latest policy of Financial Services Authority (OJK).

Executive Director of Capital and Investment, Archied Noto Pradono said generally the company succeeded in executing several key strategies to maintain the company’s growth trend. The company focuses on its principal businesses, which are property and real estate development to maintain its growth in the midst of slowing down of national economy.

The management of Intiland is committed to improving the company’s value and that of the shareholders by maintaining its growth. The goal can be realized by improving the company’s performance, either its financial or operational performance.

“Throughout the year the national property industry faced a stiff battle. We are evaluating the direction of the trend in the property sector and the national economy. One of the ways to do this is preparing several key strategies related to the type of products we want to develop and to the time to launch it to the market,” Archied explained, after the GMS.

For this year Intiland has planned to launch several new projects in Jakarta and Surabaya. They comprise mixed-use projects, vertical residential projects and office facilities.

Most of Intiland developed projects are distributed in Jakarta and Surabaya areas. They fall into four segments: mixed-use and vertical residential (condominium) projects, residential area, and industrial estate, as the segment contributing to the company’s development income.

Another segment is property investment which provides the company with recurring income. These projects include office buildings, Intiwhiz Hotel chain, hospitals, and golf and sports facilities.

Archied explained that the company’s development will be decided on the big-scale and long-term development projects which give recurring income.

“In maintaining the growth the company is committed to improving its recurring income sector.  The completion of the mixed-use office project, South Quarter, in Jakarta this year should lead to significant contribution to the company by next year,” Archied said.

Other projects which significantly contribute to recurring income are the mixed-use projects, Spazio Tower and Praxis in Surabaya, which have entered their construction stages in 2014. Ngoro Industrial Park also has completed the development of Standard Factory Building, available for lease to companies. The development is projected to contribute significantly to the company’s recurring income.

Archied explained the company has prepared capital expenditure (CAPEX) of Rp 2.1 trillion to finance the company’s projects this year. Of the amount, Rp 1.92 trillion or 91.3 percent is allocated for project construction. The rest is to be used for business development and to purchase land for land reserves.