JIHD reports increase in profit

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)