Property developer PT Megapolitan Developments Tbk has managed to maintain an upward trend in revenue performance. Based on the 2016 annual financial report, PT Megapolitan Developments Tbk posted revenue of Rp330.4 billion from 2015's achievement of Rp325.3 billion.

Jakarta (03/31) - Property developer PT Megapolitan Developments Tbk has managed to maintain a trend of increasing revenue performance. Based on the 2016 annual financial report, PT Megapolitan Developments Tbk posted revenue of Rp330.4 billion from 2015's achievement of Rp325.3 billion.

Ronald Wihardja, Managing Director of PT Megapolitan Developments Tbk revealed that the increase in revenue was driven by residential projects developed by the Company in the Cinere region. "Recognition of sales of residential projects such as Cinere Parkview, Graha Cinere for the types of houses Fancy and Cozy, and Cinere One Residence which contributed greatly to the increase in operating income," said Ronald.

In terms of its development segmentation, housing projects are still the largest contributor to operating revenues reaching Rp.113.4 billion or 35 percent of total revenue. The rental segment from the shopping center contributed IDR 102.1 billion or 30 percent, mostly from the Cinere Mall and Cinere Bellevue Mall. The apartment segment recorded a revenue contribution of Rp62 billion or 19 percent coming from the Cloud Tower, Sky Tower and Cinere Bellevue Suites apartments. The shop and kiosk segment contributed IDR52.4 billion or 16 percent through Cinere Terrace Commerial and Bizpark @Vivo Sentul and Galleria Kiosk @Vivo Sentul kiosks.

In terms of type, development income contributed IDR228 billion or 70 percent of the total. The rest comes from sustainable income (recurring income) which reached Rp102 billion or 30 percent.

The company is committed to continuing to develop and build a number of projects such as Cloud Tower and Sky Tower and Galleria Vivo Mall Sentul. This step was taken to strengthen the Company's financial performance and profitability in the future. "With the operation of Cloud Tower, Sky Tower, and Galleria Vivo Mall Sentul, it is expected to make a significant contribution within the next one to two years to the Company's sustainable income," explained Ronald.

Ronald revealed that the national property industry in 2016 has not experienced a significant increase, but management has managed to provide commitment in maintaining performance growth. This is seen from the assets of PT Megapolitan Developments Tbk, which experienced an increase of 14 percent, namely Rp1, 363 trillion compared to the previous year amounting to Rp1, 196 trillion. Ronald said the increase was due to an increase in Cash, Accounts Receivable, and inventories in all projects including the Galleria Vivo Mall Sentul, Cinere Parkview, Cloud Tower and Sky Tower.

Ronald is optimistic that the national property market is expected to start improving in 2017 along with the development of infrastructure that is currently being intensively implemented in a number of regions in Indonesia, especially the Greater Jakarta area. In addition to infrastructure, a number of efforts and policy packages issued by the government will also stimulate the homeland property industry.

This year the Company focuses on selling all existing inventory of projects in line with the launch of a number of new projects with strong development concepts in Cinere, Karawaci, and Sentul. A number of new projects have been prepared by the Company to be launched in 2017, including exclusive residences, shophouses and apartments in Cinere, exclusive residences in Sentul, and further development in the existing project of The Habitat @Karawaci apartment.

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