SSI hopes for better revenue with Glodok Plaza

SSI hopes for better revenue with Glodok Plaza

JAKARTA (JP): Publicly listed property company PT Surya
Semesta Internusa said on Thursday it was optimistic the
reopening of Glodok Plaza in downtown Jakarta would boost its
financial performance.

"The center will become our cash cow," company vice president
Johannes Suriadjaya said.

Glodok Plaza, which was the country's largest electronics and
computer center, was one of hundreds of buildings burned down
during the May 1998 riots.

The vendors in the plaza moved their businesses elsewhere in
the capital, including Mangga Dua shopping complex and Gadjah
Mada Plaza, also in downtown Jakarta.

Johannes said Glodok Plaza, with 400 shops covering a total of
23,000 square meters, was being renovated and part of the plaza
would be opened at the end of May.

He said the renovation would cost the company Rp 115 billion,
about Rp 100 billion of which was provided by insurance
companies.

He said he was optimistic those vendors who moved out of
Glodok Plaza following the riots would return to the renovated
shopping center.

"About 350 companies have booked spaces here," Johannes said.

He also said his company wished to generate more revenue this
year through cost-cutting and divestment programs.

The company will merge its 10 real estate subsidiaries into
six companies to cut management costs, and plans to divest its
shares in building material producer PT Pacific Prestress and a
property in Bali, he said.

He also said the company this year would focus on the
rescheduling of its US$80 million debt to creditors, including
the Indonesian Bank Restructuring Agency which holds 40 percent
of the company's debt.

He said the company expected to extend its debt payments to
between five and eight years.

Johannes also said the company booked Rp 34.42 billion in net
profit last year, a turnaround from a loss of Rp 65.38 billion in
1998.

He attributed the profit to the cost-cutting measures
implemented by the company and the sale of its 12.5 percent share
in auto component producer PT Denso Indonesia for $7.5 million.

The company booked a net operating income of Rp 13.99 billion
last year, against an operating loss of Rp 33.36 billion.

The company's properties include the Grand Melia Hotel in
Jakarta and the Melia Bali hotel in Nusa Dua. (jsk)