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eveloper PT Bumi Serpong Damai (BSDE) expects to book a double increase in its net profits this year due to extra revenues resulting from the sales of land plots to the company’s foreign partners.

BSDE director Hermawan Wijaya said his company would likely see up to a 25 percent increase in revenue this year to about Rp 4.6 trillion (US$477.67 million) from about Rp 3.7 trillion.

According to Hermawan, with the surge in total revenues, the company’s net profit was projected to nearly double to Rp 2 trillion from about Rp 1.1 trillion in 2012. “We may see a bottom line of almost Rp 2 trillion in 2013,” he said.

The main contributing factor to BSDE’s business will be the sale of up to 78 hectares of the company’s
land in BSD city, just southwest of Jakarta.

“We have two potential foreign investors interested in the land in BSD City. Last year, we announced that Hong Kong Land would enter Indonesia in cooperation with us. As for the other foreign investor, I cannot reveal that now,” Hermawan said.

Last October, Hong Kong Land and Sinar Mas Land signed an agreement to set up a joint venture. BSDE is one company under Sinar Mas Land group.

The joint venture, of which BSDE will hold a 51 percent stake, will purchase between 65 and 68 hectares of land in the BSD City area to develop exclusive housing complexes, Hermawan said. The transaction is estimated to be worth between Rp 1.3 trillion and Rp 1.4 trillion.

“We hope to realize the establishment of the joint venture this year and start the project in the second half of the year,” Hermawan said.

In the second joint venture, BSDE will hold a 33 percent stake. Hermawan said the joint venture would purchase another 10 hectares of land in BSD City and develop it for commercial complexes.

BSDE has completed the first stage of development on a 1,500 hectare area of BSD City and is working on the second phase of around 2,000 hectares, which is expected to be completed by 2020. The company will continue the development up to 2,450 hectares, the third stage of which is scheduled to be completed by 2035.

Hermawan said that BSDE expected to acquire around 100 hectares of land this year for the development project.

“We are expecting to acquire up to 600 hectares. However, that can’t be done all at once. Therefore, our target is to clear around 100 hectares per year,” Hermawan said.

BSDE is allocating Rp 2.5 trillion to support its expansion this year, to facilitate infrastructure projects, to support existing projects, housing developments and land acquisition.

Hermawan said that his company would finance the expenditure through internal cash and funds gained from the sales of its property products.