JIHD reports increase in profit

JAKARTA (JP): Publicly listed PT Jakarta International Hotels and Development (JIHD) reported a strong growth in the first semester of this year despite the closure of Hotel Borobudur, one of its main businesses.

JIHD's director Budiman Effendi said yesterday the net profit for the January to June period this year rose 111.4 percent to Rp 7.4 billion (US$2.85 million) from Rp 3.52 billion in the same period last year.

Budiman attributed the healthy profit growth to the company's strong real estate business.

Revenues from real estate rose by 57.7 percent to Rp 51.4 billion this year.

"Real estate revenue came from the sales of apartments in the Kusuma Candra development and from sales of land by PT Danayasa Arthatama (Danayasa) on lot 11 of the Sudirman Central Business District," he said.

Operating income from the real estate business increased by 117.4 percent to Rp 10 billion in the January to June period, he said.

JIHD's total operating income was affected by an operating loss of Rp 11.3 billion in the company's hotel business since it closed its Hotel Borobudur in October 1995 for refurbishment.

The company decided to close the hotel during the renovation period to minimize the time required for the renovation and avoid causing inconvenience to guests.

The hotel will reopen for business this month, but the hotel Borobudur's service apartments remained in use throughout the renovation period.

Budiman said the closure of the Borobudur had a detrimental effect on JIHD's income, but it expected an operating margin of 48 percent in the first full year of operation next year.

The strong rise in net profit also came from JIHD's 21.37 percent interest in PT Satelit Palapa Indonesia (Satelindo), a cellular telecommunications operator in the country, Budiman said.

During this year's first six months, Satelindo reported a net income of Rp 49 billion, he said.

The company's other income from non-hotel operation was up 133.3 percent to Rp 12.06 billion in the January to June period this year.

Budiman said the company expected to begin booking sales from the two office towers of the Conrad International Center. The first tower was already 90 percent precommitted.

He said the company could only begin booking sales once the development was 20 percent completed, which was targeted for this year's last quarter. (das)