The company’s decision was highly influenced by increased risk amid intensive political activities ahead of the upcoming regional elections in June.

Instead of expanding to other cities, Intiland will concentrate on its core market areas in Jakarta and Surabaya, which have a large market base.

It still has approximately 2,100 hectares of land banks in both cities, which translate into more than 20 years of future development projects.

The company, which focuses on buyers from middle-income to upper-income groups, will execute two new projects: an apartment complex in South Jakarta and a mixed-used development in West Surabaya. It plans to unveil both in the fourth quarter.

Apart from launching new projects, the publicly listed developer will also continue its existing apartment projects — South Quarter II in South Jakarta and Alenia in West Surabaya.

“Intiland will be conservative this year. We prefer to work on available land banks; there will be no expansion,” Intiland corporate secretary Theresia Rustandi said during a media event recently.

The company seeks to achieve Rp 3.3 trillion (US$240.9 million) in marketing sales in 2018, up 15 percent from the previous year. In 2017, high-rise buildings and mixed-use developments made up 75.7 percent of total marketing sales, followed by landed residential developments, which made up 18.3 percent, and industrial estate with 6.1 percent.

Furthermore, Intiland also targets the recurring income from property investments to climb by 26 percent annually to Rp 547 billion in 2018 from last year.

Although Intiland concurs that the property market will grow modestly this year as investors tend to “wait and see”, it believes the domestic market is still enormous.

“We believe that the market is still there. It is a matter of how we provide attractive concepts for investors so they want to buy our products,” said Archied Noto Pradono, Intiland executive director for capital and investment management.

External factors, such as banks’ efforts to provide customers with low interest rates for mortgage loans, would also be a trigger to boost housing sales this year, he added.

At present, Intiland did not have any plans to build products specifically catering to the low-income segment because it did not have the expertise to do so, Theresia said.

In Jakarta, the property developer’s flagship projects include luxury apartments Regatta and 1 Park Avenue, and mixed-use complex South Quarter. Meanwhile, the current projects in the capital are Spazio Tower, Praxis and Darmo Harapan.

Established in 1983, Intiland was listed on the Indonesia Stock Exchange (IDX) in 1991. It developed projects classified as high-rise and residential buildings, landed residential buildings and industrial estates.

As of last September, Truss Investment Partners controlled 22.24 percent of the company’s shares, followed by Strands Investments Ltd. (16.52 percent), Singapore-based CIMB Securities (14.04 percent) and the public (47.20 percent).

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