Jababeka Ready to Increase Sales of Industrial Zones and Develop Kendal Industrial Area

INDUSTRY.co.id - Jakarta, PT Kawasan Industri Jababeka Tbk is ready to increase the sale of industrial estate land next year and focus on developing Kendal Industrial Area, whose sales are quite satisfactory this year.

The company with the code of the KIJA issuer has sold the Kendal Industrial Estate this year above the expected target at the beginning of the year, so Jababeka's managers believe the business prospects in 2017 will be better.

Regarding the plan to increase land reserves (landbank), Jababeka management prepares to expand the savings of land in the area Kendal. Currently KIJA focus on freeing land in the first phase, which is an area of ​​860 hectares (ha).

As for the land that has been released, currently in the 700-hectare figure. In addition to Kendal, KIJA glanced at several areas to increase their land bank, such as Cikarang.

Throughout this year, the company has allocated a capital expenditure of Rp600 billion and a business plan next year; the company will direct its clients to Cikarang area if the client profile is a complete industry and has a need for access to the capital.

Then Kendal will be offered to industry players with different business specifications with clients' profile in Cikarang. KIJA's optimism is not without foundation.

Better economic prospects and infrastructure policy packages offered by the government will support the development of the industrial estate business. Moreover, the government is preparing a package of economic policies volume 15, which among others concerning improvements to Indonesia's logistics.

Meanwhile, Bahana Securities analyst, Sanni Satrio Dwi Utomo, said that the company targets to book pre-sales of Rp 1.4 trillion this year.

"We are projecting a bit conservative from management of Rp1.2 trillion for pre-sales," Sanni said.

Even so, Sanni assessed the positive achievement of KIJA pre sales this year, supported by demand for industrial land in Kendal. Throughout the six months, the first month of this year also the industrial area of ​​Kendal contributed about Rp60 billion to pre-sales achievements or has met 24% of the full year target of Rp252 billion.

"The pre-sale is supported by the transaction of its partner, Sembcorp Development Ltd. The industrial area of ​​Kendal has been sold to the food and beverages, furniture and sports goods industry," he said.