PWON 2015

Company analysis

Pakuwon Jati as one of largest property company in indonesia, it continues in expanding its business in capturing demand from customer in its purpose to win the competition in property segment. Competitors in property industry are Agung Podomoro Land, Ciputra, Lippo Karawaci,Alam Sutera and etc.

In 2015 economic growth of indonesia was around 4.7 %, it was beneath the government target, 5 %. The slowdown of economic growth was influenced by low consumption and low price of commodities which was dominating export sector. Domestic consumption growth was improved in third quarter of 2015; it was at 4.53 % (yoy).

Central Bank also has loan to value regulation that was possibly not friendly to investor who invested in property as investment. Higher interest expense also tends to decrease demand of real estate.

 In October 2014 the company acquired PT Pakuwon Permai, its asset and revenue are consolidated to company’s financial statement. As the result of that recurring income of the company increased significantly as the additional asset that comprises Blok M Plaza, Supermal Pakuwon Indah, Royal Plaza and Somerset Berlian.  

In 2015 the company was also operating new hotel at its Gandaria city, Sheraton grand Jakarta. It strengthened its income from hospitality segment.

In 2015 its total sales increased more than 19 %, it comprised 46 % shopping center and office, 3.4 % hospitality and 49.9 % residential sales. The occupancy of its hotel in 2015 declined more than 3 %, despite it was able to increase its shopping center and office at round 29 % and its residential segment at more than 10 %.