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espite the industrial slowdown, property developer PT Pakuwon Jati is optimistic it can attain its target this year given the fact that half of its marketing sales target had been achieved by May.

Pakuwon Jati business development director Ivy Wong said she was confident the company could book a better financial performance in 2015 compared with last year despite the unfavorable property market.

'€œEvery year we book a 20 to 30 percent increase in our sales. This year, we are optimistic that our revenues will be at least higher than last year thanks to our recurring income. We will strive to maintain the ratio [of recurring income and other sales] at around 50/50,'€ she said.

Pakuwon Jati, in a public exposé held on Thursday, announced it had reaped Rp 1.82 trillion (US$136.64 million) in marketing sales as of May, or around 52 percent of its annual target of Rp 3.48 trillion.

The company'€™s recurring income, according to the document, stood at around 46 percent of its total revenues of Rp 3.87 trillion by the end of last year.

According to Ivy, the company expected a significant increase in recurring income from its newly acquired project, Pakuwon Permai (PP). The new project is expected to boost the company'€™s fixed income by 20 percent starting this year.

Pakuwon acquired a 67.1 percent stake in Pakuwon Permai from EEMF Asian Developments BV, an unaffiliated third party, back in October, in a transaction worth $138.1 million. The acquisition was financed with $200 million in funds the company raised from a bond issuance in July last year.

The newly acquired company gives Pakuwon some new assets, which include a 178,000-square-meter (sqm) retail center in western Surabaya and a hotel and service apartment complex comprising 147 rooms.

Pakuwon Permai is now developing 86,000 sqm of retail space, 791 hotel rooms and 101,000 sqm of condominiums. Another 122,000 sqm project is in the pipeline.

Pakuwon Jati finance director Minarto Basuki said it had no plan to revise its targets, despite a slowdown in the industry that had contributed around a 15 percent year-on-year decline to Rp 328.62 billion in the company'€™s first-quarter bottom line.

'€œWe previously decided to keep our target as we were still awaiting the finalization of some regulations, such as tax revisions,'€ he said, adding that the regulations have now been issued.

The government has lowered thresholds for landed houses and apartments eligible for a 20 percent luxury tax to Rp 5 billion from the current Rp 10 billion, which impacts a large portion of the company'€™s portfolio.

The good news, however, came from a loosened loan-to-value regulation as well as the government'€™s plan to allow apartment ownership for foreigners, which is expected to bring a positive sentiment to the industry and boost the company'€™s sales, Ivy said. She said the company had yet to calculate how the positive impact will affect the company in numbers.

Rizky Hidayat from Mandiri Sekuritas said he was optimistic Pakuwon could garner the targeted marketing sales on the back of its move to create affordable housing to mitigate the impact of luxury taxes as well as an expected boost from a number of projects to be launched in the second half.