The Jakarta Post, Jakarta
Publicly listed property developer PT Surya Semesta Indonesia (SSI) is planning to spend Rp 80 billion (US$8.5 million) out of its own funds to partly finance developments this year.
""The money will be used to finance three expansion projects that are now underway,"" SSI president director Johannes Suriadjaja told reporters Monday after a shareholders meeting in Jakarta.
He said that the three projects comprised the second phase of the Suryacipta City of Industry, an industrial estate located in Karawang, West Java; the repositioning of Glodok Plaza in West Jakarta as a center for electronics goods, entertainment and building materials, and a mid-to-upper-end residential estate.
""The construction work for these projects is scheduled for completion this year, he said.
Two other projects -- the development of a 10-hectare resort with 73 villas in Ungasan, Bali, and the construction of an International Trade Center (ITC) on 4.8 hectares in Pasar Minggu, South Jakarta -- would be largely financed by bank loans.
""To finance these two projects, which are planned to be finished in 2007, we will rely on borrowing,"" Johny said.
For the Ungasan project, which will cost US$26 million, the company had received $5 million in May from a financial institution in Hong Kong, which had pledged to provide loans totaling $17 million for the project, he said.
""We are expecting to also receive pre-sale payments from clients interested in the project,"" he said, adding that for the ITC project, the company had received Rp 500 billion from one of the future anchor tenants, Carrefour.
Johny said that the shareholders had agreed at the meeting not to pay out a dividend this year, but rather to use the company's entire 2005 net profit of Rp 72 billion to partly finance the expansion projects.
In 2004, the company suffered a loss of Rp 85 billion.
Most of 2005's income came from the company's construction and building materials businesses, which contributed 67.5 percent and 16.4 percent respectively. (09)
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