Property developers Bumi Serpong Damai and Agung Podomoro reported higher profit in the first half of this year on rising revenue.
Net income at Bumi Serpong rose 31 percent to Rp 507.2 billion ($53.8 million) in the January-June period compared to the same six months a year earlier.
Revenue at Bumi Serpong, which is controlled by Sinar Mas Group, rose 33 percent to Rp 1.6 trillion, the company said in a brief prospectus published in Investor Daily on Monday.
Bumi Serpong has expanded to capitalize on rising purchasing power among Indonesians. Agung Podomoro, one the country’s biggest property companies, has hinted that it could spend as much Rp 11 trillion this year to acquire new land.
Bumi Serpong is studying an option to buy control of Kota Deltamas, a satellite township in Cikarang, about 75 kilometers east of Jakarta, the company said last week. Kota Deltamas, which occupies about 3,000 hectares of land, is 50 percent controlled by Sinar Mas Land, another unit of Sinar Mas Group.
Sojitz Corporation, a Tokyo-based trading company, owns 25 percent of Kota Deltamas, with the remaining 25 percent held by Fame Bridge Investment. Cikarang, in West Java, is home to big industrial manufacturers, including automotive and shoe factories.
In the first half, Agung Podomoro’s net income increased 97 percent to Rp 437.8 billion compared to the same period a year earlier. Revenue at Agung Podomoro rose 47 percent to Rp 2.32 trillion in the first half of this year, the company said in a brief prospectus published in a local newspaper on Monday.
Bumi Serpong’s main asset is a massive property development in Banten that boasts it is half the size of Paris. Agung Podomoro has dozens of residential and commercial sites across Jakarta.
Shares in Bumi Serpong fell 3.9 percent to Rp 1,130 while shares of Agung Podomoro rose 2.9 percent to Rp 3,55 on the Indonesia Stock Exchange on Monday, a day on which the main stock gauge gained 0.4 percent.