SSI hopes for better revenue with Glodok Plaza<\/p>\n
JAKARTA (JP): Publicly listed property company PT Surya
\nSemesta Internusa said on Thursday it was optimistic the
\nreopening of Glodok Plaza in downtown Jakarta would boost its
\nfinancial performance.<\/p>\n
\"The center will become our cash cow,\" company vice president
\nJohannes Suriadjaya said.<\/p>\n
Glodok Plaza, which was the country's largest electronics and
\ncomputer center, was one of hundreds of buildings burned down
\nduring the May 1998 riots.<\/p>\n
The vendors in the plaza moved their businesses elsewhere in
\nthe capital, including Mangga Dua shopping complex and Gadjah
\nMada Plaza, also in downtown Jakarta.<\/p>\n
Johannes said Glodok Plaza, with 400 shops covering a total of
\n23,000 square meters, was being renovated and part of the plaza
\nwould be opened at the end of May.<\/p>\n
He said the renovation would cost the company Rp 115 billion,
\nabout Rp 100 billion of which was provided by insurance
\ncompanies.<\/p>\n
He said he was optimistic those vendors who moved out of
\nGlodok Plaza following the riots would return to the renovated
\nshopping center.<\/p>\n
\"About 350 companies have booked spaces here,\" Johannes said.<\/p>\n
He also said his company wished to generate more revenue this
\nyear through cost-cutting and divestment programs.<\/p>\n
The company will merge its 10 real estate subsidiaries into
\nsix companies to cut management costs, and plans to divest its
\nshares in building material producer PT Pacific Prestress and a
\nproperty in Bali, he said.<\/p>\n
He also said the company this year would focus on the
\nrescheduling of its US$80 million debt to creditors, including
\nthe Indonesian Bank Restructuring Agency which holds 40 percent
\nof the company's debt.<\/p>\n
He said the company expected to extend its debt payments to
\nbetween five and eight years.<\/p>\n
Johannes also said the company booked Rp 34.42 billion in net
\nprofit last year, a turnaround from a loss of Rp 65.38 billion in
\n1998.<\/p>\n
He attributed the profit to the cost-cutting measures
\nimplemented by the company and the sale of its 12.5 percent share
\nin auto component producer PT Denso Indonesia for $7.5 million.<\/p>\n
The company booked a net operating income of Rp 13.99 billion
\nlast year, against an operating loss of Rp 33.36 billion.<\/p>\n
The company's properties include the Grand Melia Hotel in
\nJakarta and the Melia Bali hotel in Nusa Dua. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
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