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)