Property developer PT Metropolitan Land (Metland) Tbk has absorbed 59% of its capital expenditure (Capex) for the acquisition of lands for the housing development in Metland Cikarang and Metland Kertajati, both in West Java, and other ongoing project developments.
The publicly listed company has 20 years of experience. Metland was established in 1994, focusing on residential and commercial building sectors. In 2004, Singaporean company Reco Newtown Pte. Ltd. joined Metland. In line with the increasing public trust, Metland went publicly listed at the Indonesia Stock Exchange (IDX) in June 2011.
Land acquisition and property sales
In 2022, Metland started its Capex at IDR 650 billion. By the first half of the year, it absorbed IDR 210 billion of Capex for the development of the company.
Metland Director Olivia Surodjo was quoted by Kontan on December 13, 2022, as saying that by October 2022, the company absorbed IDR 363.6 billion of the 2022 Capex. By November 2022, the company was able to realize 84% of the yearend target.
“We are still pursuing to achieve the targets in the remaining days of December,” she said.
In the Q3 2022, Metland earned revenue of IDR 994.87 billion, a 67.02% increase from the previous year of IDR 595.64 billion. The company’s revenue came from room rental at IDR 140.45 billion and customers and contracts at IDR 854.41 billion. The contracts consist of real estate, hotel revenues and other operating income.
Risks in property sector
According to Chairman of the Indonesian Real Estate Central Executive Board, Paulus Totok Lusida, developers were facing several obstacles in permits and financing.
“The obstacles start from Building Permits, Online Single Submission (OSS), which has stopped, as well as housing construction financing. So these two issues are actually the main problems of housing development in the country,” he said.
The permits have been the main obstacle in property development, such as the Standard Classification of Business (KBLI) between KBLI 68111 and KBLI 41011, environmental agreements, site plan, suitability of space utilization activities (KKPR) and the establishment of the company.
“Furthermore, the problem is the preparation stage, building permits, construction, marketing, buying and selling, the low-income housing program, handing over the public facility and management,” Lusida explained.
Another obstacle is the increasing price of construction materials, which caused a dilemma for actors in the construction industry.
