Indonesia Market Summaries 16 April 2013 Part 2

Surya Internusa boost commercial property business

SSIA is boosting their commercial property business by expanding their Graha Surya Internusa office building which would cost the company Rp1.5-1.8tn. The Indonesia Market Summaries found that this company is planning to add another tower at Graha Internusa which will add the building size to 80,000sqm from 20,000sqm now. Expansion is expected to start in January 2014 and will be funded using internal cash and external financing. The office building will then change its grade to a grade A from grade B and the average rental rate will rise from USD10/sqm to USD17-18/sqm. (Investor Daily)

Nissan seeks 67%yoy growth in East Java sales

PT Nissan Motor Indonesia aims to increase the monthly sales in East Java from around 600 units in FY12 to 1,000 units this year, implying a 67%yoy growth. Anton Wijaya, its regional manager for East Java, Bali, Lombok, and Sulawesi, expects rising sales to be supported by the opening of new dealerships this year. Initial monthly sales target would be about 700 units before ramping up to 1,000 units towards the end of the year. (Bisnis Indonesia)

Indomobil to do local assembling for Renault

Citing its CEO statement, Indomobil Sukses Internasional (IMAS) plans to do local assembling for Renault cars at one of IMAS’ local assembling facilities. Local assembling would make Renault more price competitive, as it would get better tax incentives from the government. The study remains ongoing now, with better clarity expected in July. The media reports a possibility for Renault to do local assembling for its SUV type. (Kontan)

Adhi karya: securing Rp7.6tn property backlog in 2014

A newspaper reported for Indonesia Market Summaries that ADHI, through its property subsidiaries, is securing a total of Rp7.6tn property backlog in 2014. The largest project will be a 6-Ha superblock in Daan Mogot, West Jakarta with contract value of Rp6tn and low-rise residences in Pejaten with project value of Rp800bn, where ADHI owns 70% of the project. This year, Adhi Properti is aiming for Rp890bn revenue and (Rp341bn revenue in 2012) and Rp160bn in net profit (Rp78bn net profit in 2012) (Kontan).