The late famous architect Ciputra established the company in 1981 under the name PT Citra Habitat Indonesia. Ten years later, the company changed its name to PT Ciputra Development. It has over 76 projects such as residential, apartments, offices, shopping centers, hotels, hospitals and golf courses in 33 cities across Indonesia. 

Focusing on construction projects

As one of the biggest property developers in Indonesia, Ciputra will finance its construction projects for IDR 500 billion while the remaining half will be for land acquisition.

"We have allocated Capex of IDR 1 trillion this year. Most of it, of course, is for land banking activities which we always do every year organically," Head of Investor Relations Aditya Ciputra Sastrawinata said on February 28, 2023, as quoted by bisnis.com.

The company will focus on its new hospital project in Surabaya, which has finished 3 stories as of now. Another project is the construction of a new mall in Citraland Losari City, Makassar. However, the mall project is still undergoing surveys and assessment.

Ciputra has also targeted pre-sales or marketing sales to reach IDR 8.9 trillion in 2023, a 8.3% increase from its 2022 target of IDR 8.2 trillion.

Sastrawinata said the company would focus on developing housing products for all class segments to achieve marketing sales. He added that the company would take advantage of the geographical diversity of existing projects. Ciputra will also customize products according to market needs in each development area.

Risks in property industry

Three challenges in the property industry are:

• Political instability: Any sudden changes in government policies or disruptions to the economy can have a significant impact on property industry. For example, changes to zoning laws or regulations could restrict property development or increase the cost of doing business in the industry. Additionally, political unrest or instability could cause investors to pull out of the market, leading to a decline in property values and demand.

• Economic downturns: A recession or a slowdown in the economy can lead to a decrease in demand for property, causing prices to drop. Additionally, rising inflation or interest rates can make it more difficult for buyers to afford property, leading to a decrease in demand. Economic instability can also lead to a decrease in foreign investment, which is critical for the growth of the property industry in Indonesia.

• Natural disasters: Natural disasters such as earthquakes, tsunamis and volcanic eruptions can cause a significant damage to property and disrupt the industry. The calamities can also lead to a decline in demand for property and its values in affected areas. Developers and investors need to be prepared for the potential risks and have contingency plans to minimize the impact of natural disasters on their investments.