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Profits up as developer overcomes tough climate

PAKUWON

 

COMPANY Pakuwon Jati Tbk PT

BRAND VALUE US$517 million

HEADQUARTERS Surabaya

YEAR ON YEAR CHANGE 17%

INDUSTRY Real Estate

YEAR FORMED 1982

 

Pakuwon Jati is the property developer that pioneered the superblock concept in Indonesia, integrating retail shopping malls, offices, condominiums and hotels in large-scale developments that tend to be in Surabaya, where the company was founded, and in Jakarta. While many developers in Indonesia have struggled in the past year due to market uncertainty dampening demand, Pakuwon saw net profits rise 27 percent in 2016 due to strong sales and high occupancy rates in its malls. The company’s current strategy is to enlarge its land bank for future developments, and it has a reserve set aside for acquisitions. Locations that are ready to start building include TB Simatupang in South Jakarta, and Daan Mogot, in West Jakarta, and Pakuwon has many projects due for completion in the coming two years. Pakuwon’s residential property consumers are upper middle class and high-income earners seeking a luxury lifestyle in prime locations. Developments often link high-end shopping with luxury living, hotels and office space. Pakuwon Jati has been listed on the Indonesia Stock Exchange since 1989.