Ciputra lowers this year's profit target<\/p>\n
JAKARTA (JP): PT Ciputra Development, one of the major
\npublicly listed property developers, has lowered its net profit
\ntarget for 1997 to Rp 156.36 billion (US$56.85 million) from Rp
\n163 billion due to the rupiah's sharp depreciation against the
\nU.S. dollar.<\/p>\n
\"The current rupiah depreciation would cut down profit by
\nabout Rp 15 billion this year,\" Managing Director Harun said
\nyesterday.<\/p>\n
He said potential loss from the rupiah's depreciation would be
\nrelatively small for the company, with 50 percent of loans in the
\nU.S. dollar.<\/p>\n
\"Our dollar debt is naturally hedged by the revenue in dollar
\ntoo,\" he told an investor forum held in conjunction with a two-
\nday capital market conference and exhibition which opened
\nThursday to commemorate the Capital Market Authority Agency
\n(Bapepam)'s 20th anniversary.<\/p>\n
The Indonesian rupiah has been under speculative pressure
\nrecently following the devaluation of the Thai baht and
\nPhilippine peso early last month.<\/p>\n
Rupiah has lost about 20 percent this year from Rp 2,398 early
\nJanuary to Rp 2,880 yesterday. This month alone, the currency
\nlost about 9 percent.<\/p>\n
Ciputra Development, the developer of several housing and
\noffice building complexes in Jakarta and Surabaya, booked a net
\nprofit of Rp 45.24 billion in the first semester this year, a 26
\npercent increase from Rp 35.70 billion in the corresponding
\nperiod last year.<\/p>\n
Harun said the net revenue in the January-June period this
\nyear rose to Rp 215.01 billion from Rp 191.71 billion in the same
\nperiod last year.<\/p>\n
\"Though the rupiah is depreciated, we are quite sure we can
\nreach our target this year,\" he said yesterday.<\/p>\n
In May this year, Ciputra Development through its subsidiary
\nPT Ciputra Surya, started developing Citra Harmoni housing
\nproject in Sidoardjo, Surabaya with a total investment of Rp 2
\ntrillion (US$833.33 million) over 10 years.<\/p>\n
\"The development of Citra Harmoni is done in stages with total
\ninvestment for the first stage about Rp 200 billion,\" Harun said,
\nadding the company would develop 1,200 medium houses at a cost of
\nbetween Rp 12 million and Rp 90 million.<\/p>\n
He said Citra Harmoni in Sidoardjo would cater for the growing
\nnumber of employees working in Sidoardjo industrial estates.<\/p>\n
Harun said Citragran would be developed in stages within eight
\nyears with the first stage costing about Rp 300 billion.<\/p>\n
He said Citragran's first stage -- on 45 hectares -- would
\ndevelop 238 houses with a selling price of between Rp 250 million
\nand Rp 1 billion.<\/p>\n
PT Ciputra Development plans to expand its housing business to
\nMedan, in Sumatra, Banjarmasin and Balikpapan in Kalimantan,
\nUjungpandang in South Sulawesi and Semarang in Central Java to
\ncater to the growing housing demand in the country's major
\ncities.<\/p>\n
Harun said expanding into those cities was part of the
\ncompany's long-term program.<\/p>\n
He said the cities were chosen as part of the expansion
\nprogram because they did not yet have sufficient infrastructure
\nfacilities.<\/p>\n
\"We do not want to enter Denpasar, for example, because the
\ncity already has good infrastructure,\" he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ciputra-lowers-this-years-profit-target-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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