After the company announced the acquisition in March, the company’s stock has steadily increased, touching Rp 162 (10 US cent) apiece on Tuesday, up by 132.96 percent from Rp 9.54 per share on March 7.

With the corporate action and the change in its core business, Rimo is now focusing on three key businesses: land development; property management and investment; and retail stores for building materials.

This year, Rimo has set aside Rp 1 trillion in capital expenditure (capex) to develop its three subsidiaries, namely PT Duta Regency Karunia with a land bank in Kuningan, Jakarta; PT Banua Land Sejahtera in Banjarmasin, South Kalimantan; and PT Tri Kartika in Pontianak, West Kalimantan.

“Half of the capex will be from capital injection from our strategic partners, and the rest from the firm’s internal cash and loans,” Rimo president director Teddy Tjokrosaputro said on Monday.

About Rp 200 billion to Rp 300 billion of the capex will be allocated for land development, Rp 300 billion to Rp 400 billion for land acquisition, and the remainder for operational costs and infrastructure development.

Duta Regency is currently developing an apartment in Kuningan, Jakarta, named South Hills through a joint operation partnership (KSO) with PT Metropolitan Kuningan Property. It has booked Rp 1.2 trillion in marketing sales for the project, which is expected to finish its construction in the second quarter of 2019.

In addition, the company also has a residential project in Banjarmasin under PT Banua Land Sejahtera. In the beginning, the firm is in the process of constructing 40 shop houses. As of now, from the 22 units that are almost completed, ten shop houses have been purchased by customers, Rimo finance director Herman Susanto said.

It will also develop 500 hectares of land in Pontianak, managed by its subsidiary PT Tri Kartika, to develop low-cost housing intended for supporting the government’s one million house project.

The firm aims to build 1,800 houses for the first cluster. “We will see if we can cooperate with the Public Works and Public Housing Ministry to help build low-cost houses,” Herman said.

Despite the company’s decision to close down its retail store, Rimo is looking to maintain its presence in the retail business through its plan to create building material stores.

“We are planning to create building stores like Mitra 10 or Depo Bangunan. These stores will support our core business in property,” Teddy said. The first store is planned to be opened next year.

Rimo has recorded poor financial performance over the past few years. In 2013, it only posted Rp 291 million in net sales. Last year, it only booked Rp 46 million in net sales compared with Rp 99 million in 2015.

Hokindo has a total land bank of 1,300 hectares through its ten subsidiaries in Jakarta, Serang, Puncak, Sumbawa, Banjarmasin, Balikpapan, Pontianak and Kendari. Its property businesses are targeting low, middle to high-end customers.

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