Major property developer Ciputra Development is upbeat it will reach its revenue target of Rp 7.3 trillion (US$630.5 million) for the year despite falling short of pocketing its targeted marketing sales in the first quarter.

The revenue targets represents a 45 percent year-on-year increase.

Ciputra director Tulus Santoso told a press conference on Wednesday that the developer was optimistic it would meet the target with 10 new projects it planned to launch and selling prices it planned to raise by 10 percent.

Among the projects are superblock Ciputra International in West Jakarta, Rosewood Resort and Villa in Bali and township CitraGrand Senyiur City Samarinda in East Kalimanta.

Ciputra has prepared around Rp 1.5 trillion of capital expenditure to help finance the project.

As the scale of the new projects was not too big, Tulus said the company was also considering hiking its property prices to help reach the target.

'€œWe might increase the prices by about 10 percent to cope with last year'€™s inflation of about 8.3 percent,'€ Tulus said.

He said the company was also expecting the contribution from its recurring income to revenue to rise to 20 percent this year, up from around 15 percent last year, with the conclusion of its large Ciputra World superblock projects in West Jakarta '€” which would fetch further stable income.

'€œWe expect to see our revenue get back on track after the [presidential] election,'€ he said.

'€œWe hope that the election will go only one round because if not, we might have to wait until September for conditions to start picking up.'€

Tulus said that the country'€™s not-so-strong macroeconomic performance of late had deeply affected the property sector and also made the firm lag behind in securing its targeted marketing sales.

While macroeconomic conditions have started improving, high interest rates coupled with the central bank'€™s decision on the loan-to-value (LTV) ratio, which entails a higher down payment for additional property purchases, has further caused the company to slow down in the first quarter.

Ciputra booked only Rp 1.85 trillion in marketing sales in the first three months of this year, or only 18.5 percent of its annual marketing sales target of Rp 10 trillion.

About 95 percent of Ciputra'€™s first-quarter marketing sales went to landed houses and its other business segments contributed evenly to the remaining 5 percent, Tulus said.

The company has targeted to grow its marketing sales by about 11 percent from last year'€™s figure of Rp 9 trillion.

Ciputra saw its revenue plunge by 10.36 percent year-on-year to Rp 1.2 trillion between January and March, down from Rp 1.34 trillion last year.

The developer saw its bottom line drop by 13.66 percent to Rp 320.37 billion during the first three months of 2014, compared to Rp 371.06 billion in the same period last year.

The developer'€™s sales of apartments, condotels, lots and office towers significantly plunged year-on-year, while its residential and shop house sales doubled to Rp 834.62 billion in the first quarter of the year, from Rp 481.92 in the same period last year.

Ciputra'€™s shares '€” traded under the code '€œCTRA'€ on the Indonesia Stock Exchange (IDX) '€” stood at
Rp 1,020 per share at Wednesday'€™s closing, rising about 3.03 percent from the previous day of trading.

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