Jababeka posts 56 percent increase in net profit

Jababeka posts 56 percent increase in net profit

JAKARTA (JP): Publicly listed PT Kawasan Industri Jababeka
posted a 56 percent increase in net profit to Rp 101.6 billion
(US$35.64 million) in the first semester this year from Rp 65.1
billion in the same period last year.

The company, which manages and develops housing and industrial
estates, said yesterday that the company also booked a 72 percent
increase in net sales to Rp 309.8 billion in the January to June
period this year from Rp 180.3 billion in the corresponding
period last year.

"The industrial estates contributed about 82 percent to the
company's net sales," Iwan Putra Brasali, the company's vice
president said.

He said the housing estates accounted for 15 percent of net
sales and infrastructure and office space accounted for the
remaining 3 percent.

He said industrial estate sales declined during the general
election campaign earlier this year, especially in April and May.

Iwan said the rupiah's depreciation against the U.S. dollar
did not have a negative impact on the company's performance as
the company generated most of its revenue in the U.S. dollar.

Iwan said debts totaled US$194.5 million as of June 1997 but
this did not pose a problem even though there was a sharp drop in
the rupiah because the company also had cash and deposits in
dollars worth $119.6 billion.

"The rupiah's fall against the American greenback will even
provide a gain for Jababeka," Iwan said.

PT Kawasan Industri Jababeka will start the development of
industrial estates in Cilegon following the groundbreaking
ceremony on September 9.

Jababeka is currently developing an integrated industrial
estate in Cilegon, West Serang with a total investment of about
US$600 million.

The new 1,300 hectare industrial estates will accommodate big
industries such as petrochemical industries, machinery,
electronic and the marine industry.

Jababeka had previously set up PT Gerbang Teknologi Cikarang,
a joint venture between PT Kawasan Industri Jababeka and
Singapore Investment Pte. Ltd., to develop a high tech estate in
the Cikarang estate, West Java.

The groundbreaking of this company is expected to be in early
October this year.

The listed Kawasan Industri Jababeka has obtained a license to
develop 4,270 hectares of land consisting of 1,570 hectares in
Cikarang industrial estate, 1,400 hectares in new Cikarang Kota
Hijau housing estate and 1,300 in Cilegon industrial estate in
Serang, West Java.

Earlier this month, the company, through its Dutch subsidiary
Jababeka International BV, issued three-year floating rate notes
worth US$150 million to support its industrial estate expansion.

The funds will be used to finance the land clearance of the
Cilegon industrial estate, in Serang, West Java and to acquire
76.5 percent of PT Batavia City Realty and Batavia Perkasa.

PT Batavia Perkasa is developing a shopping and office complex
in Jakarta. The shopping complex will occupy 60,000 square meters
of land, while the office complex will occupy 75 square meters.
(aly)