"Our operations will be focused on property business. Non core business, therefore, would be stopped," PT Bakrieland Development President Ambono Janurianto said here on Wednesday.
Ambono said Rp158 billion will be needed a year for the maintenance of Kanci - Pejagan toll road alone , not proportional with income.
"The company, therefore, decided to sell the asset," he said.
He said before the end of 2012, a deal is expected to be made on the plan to sell Bakrie Tol Road, a business unit of Bakrieland , operating in toll road business.
He said he is optimistic the debts of the company could be reduced by Rp2 trillion if it succeeded in divesting all of its assets having low yield.
He said the company has prepared five strategic plans to improve its performance.
The plans include focusing operation on the property sector and projects with high profit margins such as housing and apartment business, improving cost ratio, reducing debt ratio and divestment of low yield assets, he said.
He said in the first nine months of the year, Bakrieland posted an income of Rp1.3 trillion with city property contributing the largest at Rp655.3 billion or 49.7 percent.
City property units include apartments - The Wave, The Grove Condo in super block area of Rasuna Epicentrum Kuningan in South Jakarta.
Other major contributor to its income include landed residential houses accounting for 24.4 percent including Bogor Nirwana Residence, Sentul Nirwana Residence, and Batam Nirwana Residence.
By the end of June 2012, the company launched a new project - a four-star condotel (condominium and hotel building) in the Rasuna Epicentrum to be completed in the first quarter of 2014.
Residential projects already launched include big cluster The Fusion over a 30-hectare plot of land, first phase of Sentul Nirwana in three clusters over a 600 hectare plot of land.
Sentul Nirwana is currently building a tourist object, Jungle Land, over a 40 hectare plot of land to be completed in March, 2013.
(H-ASG/S012)
Editor: Jafar M Sidik
Copyright © ANTARA 2012
