JIHD reports increase in profit<\/p>\n
JAKARTA (JP): Publicly listed PT Jakarta International Hotels
\nand Development (JIHD) reported a strong growth in the first
\nsemester of this year despite the closure of Hotel Borobudur, one
\nof its main businesses.<\/p>\n
JIHD's director Budiman Effendi said yesterday the net profit
\nfor the January to June period this year rose 111.4 percent to Rp
\n7.4 billion (US$2.85 million) from Rp 3.52 billion in the same
\nperiod last year.<\/p>\n
Budiman attributed the healthy profit growth to the company's
\nstrong real estate business.<\/p>\n
Revenues from real estate rose by 57.7 percent to Rp 51.4
\nbillion this year.<\/p>\n
\"Real estate revenue came from the sales of apartments in the
\nKusuma Candra development and from sales of land by PT Danayasa
\nArthatama (Danayasa) on lot 11 of the Sudirman Central Business
\nDistrict,\" he said.<\/p>\n
Operating income from the real estate business increased by
\n117.4 percent to Rp 10 billion in the January to June period, he
\nsaid.<\/p>\n
JIHD's total operating income was affected by an operating
\nloss of Rp 11.3 billion in the company's hotel business since it
\nclosed its Hotel Borobudur in October 1995 for refurbishment.<\/p>\n
The company decided to close the hotel during the renovation
\nperiod to minimize the time required for the renovation and avoid
\ncausing inconvenience to guests.<\/p>\n
The hotel will reopen for business this month, but the hotel
\nBorobudur's service apartments remained in use throughout the
\nrenovation period.<\/p>\n
Budiman said the closure of the Borobudur had a detrimental
\neffect on JIHD's income, but it expected an operating margin of
\n48 percent in the first full year of operation next year.<\/p>\n
The strong rise in net profit also came from JIHD's 21.37
\npercent interest in PT Satelit Palapa Indonesia (Satelindo), a
\ncellular telecommunications operator in the country, Budiman
\nsaid.<\/p>\n
During this year's first six months, Satelindo reported a net
\nincome of Rp 49 billion, he said.<\/p>\n
The company's other income from non-hotel operation was up
\n133.3 percent to Rp 12.06 billion in the January to June period
\nthis year.<\/p>\n
Budiman said the company expected to begin booking sales from
\nthe two office towers of the Conrad International Center. The
\nfirst tower was already 90 percent precommitted.<\/p>\n
He said the company could only begin booking sales once the
\ndevelopment was 20 percent completed, which was targeted for this
\nyear's last quarter. (das)<\/p>",
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