INDONESIA - Real Estate & Construction
President Director, PT Rimo International Lestari (RIMO)
Teddy Tjokrosaputro was appointed CEO in March 2017. With more than 20 years of experience in various areas, Tjokrosaputro has owned and operated many types of business. He graduated with a degree in business administration from the University of Southern California (USC).
RIMO was once one of the largest retail department stores in the country back in the 1990s. Fierce competition from other retailers and online shops caused us to suffer big losses. After listing on the Indonesia Stock Exchange (IDX), a change of ownership and management was inevitable. In March 2017, new management changed the business strategy by acquiring PT Hokindo Properti Investama, an integrated property landbanker and developer, by issuing new shares in the public valued at USD300 million. In December 2017, from a loss-suffering company, RIMO made approximately IDR430 billion in total revenue and IDR145 billion in net profit, while our stock price increased by 50% in a mere nine-month period.
In Jakarta, we have two projects: the first is an apartment building in Kuningan and the second in Gandaria is still in the planning stage. We are preparing the master plan and applying for the development permits at present. We also have one project in Cianjur, West Java, a 200-ha plot of land where we will build villas, a golf course designed by Jack Nicklaus, and a five-star hotel.
No. Low-cost housing is in fact the largest investment because we will build 30,000 houses for a housing project in West Kalimantan in Pontianak. It is a 800-ha development site for which we will acquire more land to bring it up to 1,000ha. We will build affordable, low-cost housing to support the government’s One Million Houses program.
We do want to make a profit; however, we also want to develop the region because once we build in West Kalimantan, the area will become more developed and we can sell higher-priced houses there as well, which will reap greater profits.
There are in fact no government loans for the construction of these projects, though there are subsidized loans for consumers who want to buy houses. They receive government-subsidized interest rates on their loans with a down payment of only 1%. Homebuyers only pay around half the usual mortgage interest rate under this scheme.
West Kalimantan is strategically important for the government because it is close to Singapore and Malaysia. Given its strategic location, the government intends to build many projects there. In fact, the government wants to move the capital to West Kalimantan and build a large port, new bridges, schools, toll roads, railways, and other infrastructure there, not to mention develop new infrastructure to support all the palm oil plantations in the region. When we chose West Kalimantan for this low-cost housing development, it was purely on our own initiative; however, we directed it specifically at the government’s housing program. We have to be involved in building this low-cost housing.
In December 2017, we started Phase I and built 1,000 houses, and not just for locals in West Kalimantan, but personnel from the army, navy, and police force who also need housing and qualify for government loans. We have a number of other smaller projects around the country as well.
It is only possible to build apartment buildings in Jakarta because land there is extremely expensive. However, outside Jakarta there are still great opportunities to build houses, especially low-cost homes.
INDONESIA - Health & Education
President Director, Prodia Group
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