Ciputra lowers this year's profit target
Ciputra lowers this year's profit target
JAKARTA (JP): PT Ciputra Development, one of the major
publicly listed property developers, has lowered its net profit
target for 1997 to Rp 156.36 billion (US$56.85 million) from Rp
163 billion due to the rupiah's sharp depreciation against the
U.S. dollar.
"The current rupiah depreciation would cut down profit by
about Rp 15 billion this year," Managing Director Harun said
yesterday.
He said potential loss from the rupiah's depreciation would be
relatively small for the company, with 50 percent of loans in the
U.S. dollar.
"Our dollar debt is naturally hedged by the revenue in dollar
too," he told an investor forum held in conjunction with a two-
day capital market conference and exhibition which opened
Thursday to commemorate the Capital Market Authority Agency
(Bapepam)'s 20th anniversary.
The Indonesian rupiah has been under speculative pressure
recently following the devaluation of the Thai baht and
Philippine peso early last month.
Rupiah has lost about 20 percent this year from Rp 2,398 early
January to Rp 2,880 yesterday. This month alone, the currency
lost about 9 percent.
Ciputra Development, the developer of several housing and
office building complexes in Jakarta and Surabaya, booked a net
profit of Rp 45.24 billion in the first semester this year, a 26
percent increase from Rp 35.70 billion in the corresponding
period last year.
Harun said the net revenue in the January-June period this
year rose to Rp 215.01 billion from Rp 191.71 billion in the same
period last year.
"Though the rupiah is depreciated, we are quite sure we can
reach our target this year," he said yesterday.
In May this year, Ciputra Development through its subsidiary
PT Ciputra Surya, started developing Citra Harmoni housing
project in Sidoardjo, Surabaya with a total investment of Rp 2
trillion (US$833.33 million) over 10 years.
"The development of Citra Harmoni is done in stages with total
investment for the first stage about Rp 200 billion," Harun said,
adding the company would develop 1,200 medium houses at a cost of
between Rp 12 million and Rp 90 million.
He said Citra Harmoni in Sidoardjo would cater for the growing
number of employees working in Sidoardjo industrial estates.
Harun said Citragran would be developed in stages within eight
years with the first stage costing about Rp 300 billion.
He said Citragran's first stage -- on 45 hectares -- would
develop 238 houses with a selling price of between Rp 250 million
and Rp 1 billion.
PT Ciputra Development plans to expand its housing business to
Medan, in Sumatra, Banjarmasin and Balikpapan in Kalimantan,
Ujungpandang in South Sulawesi and Semarang in Central Java to
cater to the growing housing demand in the country's major
cities.
Harun said expanding into those cities was part of the
company's long-term program.
He said the cities were chosen as part of the expansion
program because they did not yet have sufficient infrastructure
facilities.
"We do not want to enter Denpasar, for example, because the
city already has good infrastructure," he said. (aly)
JAKARTA (JP): PT Ciputra Development, one of the major
publicly listed property developers, has lowered its net profit
target for 1997 to Rp 156.36 billion (US$56.85 million) from Rp
163 billion due to the rupiah's sharp depreciation against the
U.S. dollar.
"The current rupiah depreciation would cut down profit by
about Rp 15 billion this year," Managing Director Harun said
yesterday.
He said potential loss from the rupiah's depreciation would be
relatively small for the company, with 50 percent of loans in the
U.S. dollar.
"Our dollar debt is naturally hedged by the revenue in dollar
too," he told an investor forum held in conjunction with a two-
day capital market conference and exhibition which opened
Thursday to commemorate the Capital Market Authority Agency
(Bapepam)'s 20th anniversary.
The Indonesian rupiah has been under speculative pressure
recently following the devaluation of the Thai baht and
Philippine peso early last month.
Rupiah has lost about 20 percent this year from Rp 2,398 early
January to Rp 2,880 yesterday. This month alone, the currency
lost about 9 percent.
Ciputra Development, the developer of several housing and
office building complexes in Jakarta and Surabaya, booked a net
profit of Rp 45.24 billion in the first semester this year, a 26
percent increase from Rp 35.70 billion in the corresponding
period last year.
Harun said the net revenue in the January-June period this
year rose to Rp 215.01 billion from Rp 191.71 billion in the same
period last year.
"Though the rupiah is depreciated, we are quite sure we can
reach our target this year," he said yesterday.
In May this year, Ciputra Development through its subsidiary
PT Ciputra Surya, started developing Citra Harmoni housing
project in Sidoardjo, Surabaya with a total investment of Rp 2
trillion (US$833.33 million) over 10 years.
"The development of Citra Harmoni is done in stages with total
investment for the first stage about Rp 200 billion," Harun said,
adding the company would develop 1,200 medium houses at a cost of
between Rp 12 million and Rp 90 million.
He said Citra Harmoni in Sidoardjo would cater for the growing
number of employees working in Sidoardjo industrial estates.
Harun said Citragran would be developed in stages within eight
years with the first stage costing about Rp 300 billion.
He said Citragran's first stage -- on 45 hectares -- would
develop 238 houses with a selling price of between Rp 250 million
and Rp 1 billion.
PT Ciputra Development plans to expand its housing business to
Medan, in Sumatra, Banjarmasin and Balikpapan in Kalimantan,
Ujungpandang in South Sulawesi and Semarang in Central Java to
cater to the growing housing demand in the country's major
cities.
Harun said expanding into those cities was part of the
company's long-term program.
He said the cities were chosen as part of the expansion
program because they did not yet have sufficient infrastructure
facilities.
"We do not want to enter Denpasar, for example, because the
city already has good infrastructure," he said. (aly)