Jakarta (15/07) – Property developer PT Intiland Development Tbk held its Annual General Meeting of Shareholders (AGMS) for the financial year ending 31 December 2019. The shareholders have approved all of the agendas of the Company’s AGMS held at Jakarta Intiland Tower Jakarta on 15 July 2020.

Intiland’s Director of Capital Management and Investment, Archied Noto Pradono, explained at the AGMS the Company’s six agendas proposed to obtain approval from the shareholders. The six agendas included approval of the Annual Report and ratification of the Company’s Balance Sheet and Income Statement for the financial year ending 31 December 2019, appointment of a Public Accounting Firm, and the determination of the remuneration of the Board of Commissioners and the Board of Directors.

In addition to these agendas, the shareholders also approved changes in the composition of the Board of Directors and the Board of Commissioners, and the determination of the use of the Company’s net income amounting to Rp251.4 billion.

“We express our utmost appreciation to all shareholders who have given their approval to all of the AGMS agendas proposed by the management,” Archied said.

Regarding the agenda of changing the composition of the Board of Directors and the Board of Commissioners, the Deputy President Director of the Company, Sinarto Dharmawan, took his new position as President Commissioner. The membership of the Board of Commissioners has also been strengthened with the appointment of Friso Palilingan as Independent Commissioner.

Friso Palilingan previously served as member of the Company’s Audit Committee starting from 2013. He has an extensive experience in finance and accounting. He holds a master’s degree in accounting from Kwik Kian Gie School of Business and served as a Partner at PKF Indonesia and member of the Financial Accounting Standards Board at the Indonesian Institute of Accountants.

Considering the current situation resulting from the Covid-19 pandemic, as well as considering this year’s business plan, the Company decided not to distribute dividends on its income for the year of 2019. Of net income recorded by the Company, Rp249.4 billion was to be used as retained earnings, while the remaining Rp2 billion was to be used as mandatory reserve.

Archied acknowledged that the property industry was one of the sectors most severely affected by the Covid-19 pandemic. Many consumers and property investors tend to be waiting for conditions to improve and choose to postpone their property purchases.

“Almost all developers are facing considerable challenges, including the impacts of the Covid-19 pandemic. Although purchasing power remains in the market, consumers choose to postpone their purchases or investments. Property sales are still dominated by end-users, especially in the lower-to-middle segment,” Archied said.

Amidst the challenges in the property industry, the Company managed to maintain its business performance on track. Until the end of the first quarter of this year, the Company posted operating revenues of Rp830.6 billion, down 6.4% from that of the first semester of 2019, which amounted to Rp887.6 billion. This decline was mainly due to lower revenue from the mixed-use & high-rise and residential segments.

Development income provided the biggest contribution, reaching Rp546.8 billion or 82.3% of the total. This was derived from the mixed-use and high-rise development segment, amounting to Rp455.1 billion, and residential segment, amounting to Rp91.7 billion.

“In the first quarter of this year, we also sold 3.2 hectares of land in Surabaya worth Rp58.3 billion. This land was part of our inventory and was not included in the main asset to be developed in the near future,” stated Archied.

The Company also recorded recurring income of Rp159.6 billion, making up 17.7% of the total operating revenues. This segment’s contribution this year increased by 1.6% from Rp157.1 billion recorded within the same period the previous year.

In addition, the Company also recorded derivative income of Rp124.1 billion. This interest income is the impact of the adoption of the new Statement of Financial Accounting Standards which took effect from the beginning of 2020.

The Company recorded operating income of Rp234.9 billion, an increase of 27.6% compared to the first quarter of 2019. This increase led to the net income reaching Rp84.4 billion, or 74.4% higher than the net income booked in the first quarter of the previous year, amounting to Rp48.4 billion.

Archied gave a projection that the property industry will continue to face significant challenges in the next six months. Emergency conditions due to the spread of Covid-19 have directly brought about negative effects on the economy and hampered the efforts to revive the national property sector.

The Company will continue to strive to maintain its business performance this year with a development strategy that is focused on existing or ongoing projects. In the next six months the focus will still be on efforts to boost sales performance from inventory in the current projects, particularly residential and apartments.

“Considering the current situation, we tend to be conservative in our business actions and in determining to develop any new project,” he said.

The Company believes that the demand for property in the market remains present, especially among end users. This moment, indeed, is the best time for end users to invest in property products as they now have a much stronger bargaining position given the vast range of products now available in the market.

The Company acknowledges that amidst the Covid-19 pandemic, the challenges that it must face ahead are tremendous. However, the management of the Company will make sure that its operational activities will continue as planned. Accordingly, the Company will strive to boost its sales and business performance. ***