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Intiland Shareholders Approved All Agendas of the 2022 Annual GMS

Jakarta (20/07) – Property developer PT Intiland Development Tbk (Intiland; DILD) held the Annual General Meeting of Shareholders (GMS) for the financial year ending 31 December 2021, in Jakarta, on Wednesday (20/07/2022). At the Annual GMS, which was held both physically and online, the Shareholders gave their approval to the entire agendas of the Annual GMS proposed by the Company.

This Annual GMS discussed five agendas which included approval of the Annual Report and ratification of the Company’s Statement of Financial Position and Statement of Profit and Loss for the financial year ending 31 December 2021; appointment of an Independent Public Accountant; and determination of remuneration for the Board of Commissioners and Board of Directors. Other agendas of the Annual GMS included 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 Company’s Shareholders who gave their approval to the entire agendas of the Annual GMS. In the midst of the challenges, with the consumer buying interest not yet fully returned to normal levels, the Company remains optimistic that the property market condition will be better this year.

“This year the property market remains 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 GMS.

The shareholders also approved the changes to the composition of the Company’s Board of Directors and Board of Commissioners, with the appointment of Moedjianto Soesilo Tjahjono as Vice President Director of the Company. Apart from the addition of members of the Board of Directors, there were no other changes to compositions of 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 admitted 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 demand and purchasing power in general.

The Company continues to strive to maintain business operations to keep a positive performance in terms of 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 as observed in the last six months.

Archied explained that the Company has set important priorities to be carried out this year as an effort to sustain its business growth. In addition to still focusing on the development of existing projects, the Company is still preparing plans for the development of new projects 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,” stated Archied further.

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

The Company continues to strive to maintain its performance and remains focused on carrying out the four main growth strategies. These strategies are: organic growth, acquisition opportunities, strategic cooperation through joint ventures or joint operations, as well as capital and investment management.

Sales Performance

In the first half of this year, the Company recorded marketing sales to the tune of Rp803 billion. Sales from the housing development segment contributed the largest, i.e. Rp479 billion, or 60 percent of the total. Other contributors were the Industrial Estate development segment, which recorded marketing sales of Rp214 billion or 26 percent of the total, and the Mixed-Use & High Rise development segment, with Rp110 billion or 14 percent of the total.

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

“We continue to pursue sales targets in the second half by launching new products and developing new projects,” said Archied further.

In addition to obtaining marketing sales, the Company managed to maintain a stable performance from its recurring income. In the first half of this year, the Company recorded a recurring income of Rp338 billion, an increase compared to the same period last year of Rp333 billion.

“The recurring income contribution came from office rentals, such as the South Quarter and Intiland Tower, as well as the management of facilities and infrastructure, and 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 has shown a rapidly increasing trend 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 achieve growth again. The Company continues to make maximum efforts to maintain long-term business growth. New developments are focused on ongoing projects as well as boosting sales from the inventory.***