TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Adhi Karya’s LRT property arm raises $20 million in IPO
The funds will be used to develop property along the Greater Jakarta LRT lines.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
An LRT station in the Kuningan area of Jakarta is pictured in this undated photo. PT Adhi Commuter Properti (ADCP) is building property along the train route as part of the government's public transportation development policy. (JP/Wendra Ajistyatama)
S
tate-owned PT Adhi Commuter Properti (ADCP) raised Rp 288.8 billion (US$20.11 million) through an initial public offering (IPO) on Wednesday to develop property along the tracks of the Greater Jakarta LRT, not to be confused with the Jakarta LRT.
ADCP, a subsidiary of state-owned LRT developer PT Adhi Karya, plans to use 49 percent of the funds to pay back bond debt, 26 percent to develop an existing project in Bogor, West Java, and 25 percent to acquire land in Bekasi, West Java. The land will be used to build residential and commercial properties.
“This IPO further strengthens the company's business as a leading transit-oriented development (TOD) property developer,” said ADCP president director Rizkan Firman during the IPO at the Indonesia Stock Exchange (IDX).
The IPO dilutes Adhi Karya’s ownership of ADCP from nearly 100 percent to 90 percent, with the remaining 10 percent now owned by the public.
Spun off from Adhi Karya in 2018, ADCP has two main businesses: developing residential and office areas under the LRT City and Adhi City brands and managing property, including hotels, offices and commercial spaces.
ADCP business development director Rozi Sparta said the company had “substantial income to finance future projects [and] strong financial, macroeconomic conditions with government support for the property sector”.
The government has extended a tax incentive on new homes to spur household spending.
