Intiland’s Industrial Estate Performance Strengthens in 2024
Jakarta (27/03) – Property developer PT Intiland Development Tbk (Intiland; DILD) attained a positive performance in its industrial estate development segment in 2024. The segment recorded significant growth in both sales and contribution towards the Company’s operating revenue.
According to the Company’s consolidated financial statements and its subsidiaries as of December 31st 2024, the industrial estate segment recorded operating revenue of Rp 638,3 billion, increased by 159 percent compared to Rp 246,2 billion in 2023. The segment contributed 25 percent to the Company’s total operating revenue in 2024, which reached Rp 2,55 trillion.
Intiland’s Director of Capital and Investment Management Archied Noto Pradono explained that the industrial estate segment become one of key pillar which support the Company’s financial performance in 2024. This growth was primarily driven by increased sales of industrial land and warehouse space owned by the Company.
“In the midst of a property market which still facing numerous challenges in 2024, we have observed a rising trend in demand for industrial land. This phenomenon aligns with the growing investment in the manufacturing and logistics sectors, including the need for factory relocations into industrial zones,” Archied said in a written statement, Thursday (27/03).
The Company’s operating revenue from industrial estate segment was generated from two strategic industrial estates and one warehouse complex which developed and managed by Intiland. These projects consist of Ngoro Industrial Park (NIP) in Mojokerto, East Java, Batang Industrial Park (BIP) in Batang Regency, Central Java, and Aeropolis Technopark warehouses in Tangerang.
Archied said the newly developed industrial estate, Batang Industrial Park has made a significant contribution to the Company’s revenue performance. In addition to its strategic location, BIP developed as a modern industrial area with excellent facilities and infrastructure. Currently, BIP has gained the trust from several multinational and national companies that have started building new factories within the area.
“In the future we will focus on industrial estate sector which in line with the government’s target with 8 percent growth, including efforts to increase foreign direct investment,” Archied added.
From the sales aspect, the industrial estate segment also posted a positive performance. In 2024, it contributed Rp 567 billion in marketing sales, increased by 68 percent from Rp 338,2 billion in 2023. This achievement represented 34 percent of the Company’s total marketing sales for 2024 which mainly driven by the sale of industrial land in BIP and warehouse units at Aeropolis Technopark.
According to Archied, the Company believes the potential of industrial estate development in Indonesia holds strong prospects. Besides the support from government policies through facilitating investment, there is also ongoing improvements in infrastructure development. Industrial estates become one of strategic sector and it capable to attract global companies looking to expand operations in Indonesia.
“We will soon launch new industrial estate development projects in response to the rising demand in this sector,” he further stated.
The Company remains confident that industrial estates will continue to be a leading sector in the future, especially with the support from pro-investment government regulations and growing demand for industrial land. The Company optimistic it can continue contributing to the development of national industrial estates and provide the best solutions for industrial players seeking to grow their businesses.
Financial Performance
According to financial statement as of December 31st 2024, the Company recorded operating revenue of Rp 2,55 trillion, lower than 2023 of Rp 3,9 trillion. Development income contributed Rp 1,66 trillion or 65 percent of total revenue. The Company also recorded recurring income of Rp 883,8 billion or 25 percent of total operating revenue.
In terms of development segments, the residential segment contributed Rp 659,4 billion in operating revenue, decreased by 22,1 percent compared to 2023. Meanwhile, the mixed-use and high-rise segment booked Rp 371,8 billion in operating revenue, decreased by 81,7 percent compared to the previous year.
Archied stated that the investment property segment which become the source of recurring income also grow in 2024. This segment recorded revenue of Rp 883,8 billion, increased by 14,6 percent from Rp 771,3 billion in 2023.
The largest contributions still came from management of facility and sports facilities, as well as office leasing. The industrial estate segment also contributed revenue from estate management, waste treatment, and warehouse facility leasing.
In terms of profitability performance, the Company recorded an operating profit of Rp 263,9 billion, lower from Rp 1,27 trillion in 2023. Nevertheless, the Company succeeded on maintained net profit performance at Rp 174,8 billion, relatively stable compared to Rp 174,1 billion in 2023.