The Shareholders Approved The Appointment of Dr. Sofyan A. Djalil as Deputy Chief Commissioner of Intiland
Jakarta (24/05) – Property developer PT Intiland Development Tbk (Intiland; DILD) held its Annual General Meeting of Shareholders (Annual GMS) for the fiscal year ending December 31, 2022, at Intiland Tower, Jakarta, on Wednesday (24/05). During the Annual GMS, held online and in person on Wednesday, May 24, 2023, shareholders approved all proposed agenda items.
Archied Noto Pradono, Director of Capital Management and Investment at Intiland, explained that the 2023 Annual GMS covered four main agendas. Three were mandatory items: Approval of the Annual Report and Ratification of the Company’s Financial Statements for the fiscal year ending December 31, 2022, Appointment of an Independent Public Accountant, and Determination of the Remuneration for the Board of Commissioners. The other agenda was the Approval of Changes to the Board of Directors and Board of Commissioners of the Company.
“Shareholders have approved all the items on the agenda of the Annual General Meeting and the appointment of DR. Sofyan A. Djalil as Deputy Chief Commissioner and Independent Commissioner, as well as accepting the resignation of Mr. Lennard Ho Kian Guan, Deputy Chief Commissioner of Intiland,” Archied announced at the press conference of Intiland’s 2023 Annual GMS at Intiland Tower, Jakarta, on Wednesday (24/05).
Archied explained that the Board of Commissioners and Board of Directors of Intiland express their gratitude and appreciation to the shareholders for fully approving all agenda items at the Annual GMS. This decision reaffirms the shareholders’ commitment and confidence in the company’s plans, reflecting a strong spirit of collaboration in achieving sustainable business growth.
“The company’s challenges ahead will be increasingly demanding. With the approval and support of the shareholders, we can proceed with crucial steps to achieve the company’s strategic goals and enhance value for the shareholders,” Archied further commented.
One of the agenda items approved by the Shareholders is the appointment of Dr. Sofyan A. Djalil, Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia from 2016-2022, as Vice President Commissioner and Independent Commissioner of the Company. Dr. Sofyan A. Djalil’s inclusion will strengthen the Board of Commissioners, enhance oversight functions, and implement Good Corporate Governance.
“Dr. Sofyan A. Djalil brings extensive experience and expertise in the business world, particularly in the property sector. We believe his addition to the Board of Commissioners will strengthen the management team to improve the quality of corporate governance and long-term business performance,” Archied stated.
Performance Improvement
The company’s management assesses this year’s current condition and business prospects as still quite challenging. The company realizes that improving business performance requires genuine effort from all corporate organs, including support from all stakeholders. The company appreciates every feedback, suggestion, and input provided by all stakeholders, including loyal consumers who have been part of Intiland’s business journey.
Archied revealed that the company’s business performance for the first quarter of 2023 was quite good. Based on the financial report ending on March 31, 2023, the company recorded a business revenue of Rp1.54 trillion. This amount increased by Rp981 billion or surged by 174.3 percent compared to the achievement in the first quarter of 2022, which was Rp562.5 billion.
The increase in business revenue was mainly driven by the recognition of sales from the mixed-use and high-rise development segment, particularly from the Fifty Seven Promenade apartments. Other development segments, such as residential areas, industrial zones, and investment properties, also contributed to this increase.
“Business revenue increased significantly mainly due to the recognition of sales from the Fifty Seven Promenade apartments, which have been handed over,” said Archied.
Revenue from development (development income) still provides the largest contribution, reaching Rp1.36 trillion or 88.3 percent of the total. This amount jumped by 246.5 percent compared to the first quarter of 2022, which was Rp393.4 billion. Development revenue was obtained from three segments: mixed-use & high-rise, residential areas, and industrial zones.
The next source of business revenue comes from recurring income obtained from the investment property segment. This source of business income accounted for Rp180 billion or 11.7 percent of the total. Revenue from recurring income increased by 6.5 percent compared to the same period last year, amounting to Rp169.1 billion.
Archied explained that in terms of project development segments, revenue from the mixed-use & high-rise segment contributed the most, reaching Rp1.18 trillion or 76.8 percent. This contribution increased by 877.5 percent compared to the first quarter of 2022, which was Rp121.3 billion.
The next contributor came from the investment property segment, amounting to Rp180 billion or 11.7 percent of the total. Revenue from this segment increased by 6.5 percent compared to the first quarter of 2022, which was Rp169.1 billion.
The residential area development segment contributed Rp134.1 billion, or 8.7 percent of the total. This segment’s contribution decreased by 19.3 percent compared to last year’s period when it was Rp166.1 billion.
The next contributor came from the industrial zone segment, which contributed business revenue of Rp43.4 billion or 2.8 percent of the total. This amount decreased by 59 percent compared to the first quarter of 2022, which was Rp106 billion.
Archied stated that the growth in business revenue is a significant achievement amidst the conditions and challenges in the national property sector. The company continues to strive to maintain this growth trend through the development of ongoing projects as well as new projects.
The increase in business revenue has also improved the company’s profitability performance. Intiland’s gross profit reached Rp746.7 billion, an increase of 255.4 percent compared to the same period last year. Operating profit and net profit for the year were Rp663.9 billion and Rp391.7 billion, respectively, representing increases of 407.5 percent and 492.9 percent.
“The net profit for the first quarter of this year amounted to Rp30.4 billion, an improvement compared to last year’s period, which recorded a net loss of Rp72.7 billion. Most of the current year’s profit that we recorded is attributed to non-controlling interests amounting to Rp361.3 billion,” Archied further explained.
Sales Projection
As the national economic and property industry conditions become increasingly conducive, the Company targets sales (marketing sales) of Rp2.4 trillion this year. The Company will focus its efforts on achieving the target by increasing the sales of unit stock or inventory from ongoing projects and new developments in the high-rise, residential, and industrial segments.
The Company currently holds unit stock or inventory in several mixed-use and high-rise development projects. Some of these include 1Park Avenue apartments, Fifty Seven Promenade, Regatta, and SQ Res in Jakarta and Praxis apartments, The Rosebay, Sumatra36, and Spazio Tower in Surabaya.
Archied projects that the property market conditions this year are still quite challenging but will be better than last year. The level of society’s need for property products is still estimated to be quite high along with improving purchasing and investment interest.
Currently, property market growth is still supported by the purchase of landed houses dominated by end-users. Meanwhile, the sales trend for the apartment market is still relatively restrained and growing slowly.
“We observe that the growth in the landed home market targeting end-users has been relatively stable since last year. We will try to leverage this momentum and trend by developing new products and clusters in our ongoing projects,” said Archied.
The Company plans to embark on new developments this year in several projects, especially in the residential area segment. In the Amesta Living residential area located in Surabaya, the Company is launching new types of houses to meet the high interest of people living there.
Amesta Living is launching a total of 82 house units divided into three types: Kyra, Severa, and Merra. Located in the Loka cluster, these three types are compact-sized houses with land areas ranging from 50 m2 to 105 m2 and building areas ranging from 59 m2 to 126 m2. Targeting the upper-middle consumer market, these new types of houses are marketed starting from around Rp1 billion.
The Company also plans other new developments in several residential areas. These developments include Brezza in Pantai Mutiara, Jakarta, commercial area development in the Talaga Bestari residential area, and the development of new clusters in Graha Natura Surabaya.
The Company will continue to strive to increase sales and achieve this year’s sales target. As the condition of the national property market improves, increasing sales and business performance growth are important priorities for the Company.