In conducting its business, the Company is not in spite of the risks that may affect the operations and business results of the Company.
Risk management will be re-energized to further safeguard our future. We continue to refine our approach on risk management by adopting the ISO 31000 guidelines. This will ensure an even more transparent and proactive risk management processes, which will result in continual improvement of our systems and procedures. Management, our shareholders and our staff will ultimately continue to receive the much needed peace of mind on their endeavors, which bear significant risks.
Below are the risk summary which may be faced by the Company.
All of the Company’s existing properties and development projects are located in Jakarta, Surabaya and the surrounding Banten and East Java provinces. The success of the business therefore heavily depends on the continued growth of the real market in Indonesia and in particular in these regions.
The Company’s financial condition, results of operation and profitability may be materially affected by any development in the supply of or demand for property, property prices or government actions. Policies and measures introduced and which may be introduced by the government may lead to changes in market conditions, including price instability and an imbalance between supply of and demand for properties in Indonesia. The Company cannot assure that significant declines will not take place in the Indonesian property market in the future. Furthermore, there can be no assurance that there will not be measures implemented by the government to restrict the growth of the Indonesian property industry, or that there will not be material adverse changes in the Indonesian economy and the real estate markets or as a result of the government’s policies to combat inflation and other economic concerns. Any such changes could have a material adverse effect on the Company’s revenue and profitability.