“Amidst the opportunities and challenges of 2024, the Directors optimized resources for sustainable growth.”
Honorable Shareholders and Stakeholders,
On behalf of the Directors of PT Intiland Development Tbk, I present the 2024 Annual Report with positive results. These achievements reflect the hard work of the management and employees throughout the year. We observed that the national property sector remained dynamic in 2024 despite challenges. The management and employees have worked hard to find the best solutions to maintain performance and support sustainable growth.
Amidst our grief over the passing of Mr. Hendro S. Gondokusumo, Intiland’s founder and President Director, on March 13, 2025, in Singapore, I, on behalf of the Directors, sincerely thank you for your support. We extend our deepest respect and appreciation for his invaluable contributions.
THE STRATEGY OF THE COMPANY
The Directors has set key strategies to sustain growth in 2024 by optimizing economic trends and property sector dynamics. The main focus includes strengthening sales, improving financial structure, reducing debt, divesting non-core assets, and developing ongoing projects.
The Company prioritizes the residential and industrial estate sectors, which show strong demand. Residential projects are being developed in Jakarta, Tangerang, and Surabaya, while industrial estates are focused in Batang and Ngoro. Land sales in Batang have significantly contributed to revenue.
Financially, the Company successfully reduced debt and repaid Rp125 billion in Sukuk Ijarah. Funds from sukuk issuance were used for debt restructuring and working capital. Non-core assets were also divested to strengthen the financial structure.
In marketing, the “Intiland Sunshine Fair” campaign boosted sales by offering various properties and leveraging the PPN-DTP incentive. With these strategies, the Company remains optimistic about achieving sustainable growth in 2024.
THE DIRECTORS’ ROLES IN FORMULATING STRATEGIC POLICIES
The Directors carries out its duties based on the Company’s vision, mission, and long-term goals. Throughout 2024, the Board formulated strategies through regular meetings with the Board of Commissioners and relevant parties to ensure that policies align with the Company’s interests.
Every decision is made following good corporate governance principles and regulatory compliance. Consultations with the Board of Commissioners serve as part of internal control to manage risks and safeguard the Company’s reputation.
PROCESS UNDERTAKEN BY THE DIRECTORS IN STRATEGY IMPLEMENTATION
The Directors ensures the Company’s strategy is implemented through the Work Plan and Budget (RKA) and periodic monitoring of performance and risks. Gap analysis between targets and actual results is used for strategic decision-making.
Throughout 2024, the Board effectively executed the strategy through internal coordination, supervision, and corrective actions when needed. Discussions with external parties were also held to anticipate economic, political, and regulatory changes. Overall, the 2024 strategic policies were adaptive and well-executed.
2024 PERFORMANCE ACHIEVEMENTS
The Company observed that the national property sector had not fully recovered in 2024. Growth was mainly seen in the residential and industrial estate segments, driven by increasing demand. In contrast, the high-rise housing segment, particularly apartments, remained stagnant with no significant demand increase.
The Company focused on boosting sales, particularly for ready-to-occupy units across various projects. In 2024, the Company recorded Rp1.64 trillion in marketing sales, reaching 82% of the Rp2 trillion target. However, this marked a 72.4% increase from Rp950.7 billion in 2023. The shortfall in achieving the sales target was primarily due to weak apartment and office sales and the limited launch of new projects throughout the year.
The Company’s strategy to strengthen industrial land sales yielded positive results. The industrial estate segment contributed Rp567 billion in marketing sales, surpassing the Rp422.7 billion target and increasing by 67.6% from 2023. Sales mainly came from Batang Industrial Park (BIP) in Central Java, Ngoro Industrial Park (NIP) in East Java, and warehouse facilities in Aeropolis, Tangerang.
The shift in sales focus to the residential segment proved effective. Demand for more affordable housing units increased across the Company’s residential projects, further supported by the government’s extension of VAT incentives (PPN-DTP), which facilitated homeownership.
By location, projects in Jakarta and Tangerang contributed Rp561.9 billion (34% of total sales), while projects in Surabaya and surrounding areas accounted for Rp1.08 trillion (66%).
As of the audited financial report on December 31, 2024, the Company recorded operating revenue of Rp2.55 trillion, achieving 83.1% of the Rp3.07 trillion target. This consisted of Rp1.67 trillion from development income (65%) and Rp883.7 billion from recurring income (35%). Compared to 2023’s revenue of Rp3.91 trillion, this marked a 35% decline. The main factor behind the revenue drop was the high recognition of apartment sales in 2023, with contributions from this segment falling to Rp371.7 billion in 2024 from Rp2.02 trillion the previous year.
The residential segment remained the largest revenue contributor at Rp659.4 billion, though it declined by 23% from Rp861.5 billion in 2023. Key contributors were housing projects in Serenia Hills and Virya Semanan (Jakarta), Talaga Bestari (Tangerang), and Graha Natura (Surabaya).
The industrial estate segment recorded significant growth, contributing Rp638.3 billion (25% of total revenue), exceeding the target by 336% and increasing 159% from Rp246.2 billion in 2023.
Investment properties, a key source of recurring income, generated Rp883.8 billion (35% of total revenue), reaching 97% of the initial target and growing 15% from Rp771.3 billion in 2023. Revenue in this segment came from office rentals, sports facility management, and property management. Additionally, the Company recorded non-core asset sales in 2024.
Despite these achievements, profitability remained under pressure. Gross profit and operating profit stood at Rp785.4 billion and Rp457.2 billion, respectively, showing a significant decline from 2023. Amid these challenges, the Company successfully posted an attributable net profit of Rp174.8 billion in 2024, maintaining stability compared to Rp174.1 billion in 2023.
ECONOMIC AND PROPERTY SECTOR DEVELOPMENTS
We recognize that the national property sector is influenced by both domestic and global economic dynamics. In 2024, the global economy faced challenges, with projected growth of around 2.7%, constrained by economic contractions and conflicts in the United States, China, and parts of Europe.
In contrast, Indonesia’s economy showed positive performance, growing by 5.03% in 2024, according to Bank Indonesia. The OECD projects this to rise to 5.2% in 2025, making Indonesia one of the best-performing economies in the G20. This stability was supported by strong private consumption, increased investment, and export growth driven by global commodity demand.
We appreciate the Government’s success in maintaining economic stability amid global uncertainties. Indonesia’s strong economic fundamentals have been a key factor in supporting the recovery of the property industry.
In 2024, the property sector showed signs of improvement, particularly in the residential and industrial estate segments. Sales of landed houses increased, especially in the mid-range segment, supported by the Government’s Value Added Tax (VAT) incentive (PPN-DTP). The Government initially provided 100% VAT relief until June 2024, then 50% until December 2024, and later extended it back to 100% for September–December 2024 through Minister of Finance Regulation No. 61 of 2024.
With these conditions, we remain optimistic about the continued growth of the property industry. While not all segments have experienced significant growth, economic stability, a conducive political environment, and rising property demand are key factors in sustaining the Company’s momentum and future operations.
COMPANY BUSINESS DEVELOPMENT
In response to the dynamic changes of 2024, the Company undertook various adaptive measures, introduced new innovations, streamlined business processes, and strengthened marketing strategies to target more potential markets.
We strive to maintain performance stability, capitalize on growth opportunities, and enhance sales. The Board of Directors has implemented several key initiatives in business development based on four primary growth strategies: organic growth, acquisition opportunities, joint ventures, and capital and investment management.
In 2024, we successfully implemented critical steps to ensure smooth business operations and improve sales effectiveness and revenue performance. Our growth strategy through new developments remained focused on existing projects, particularly in the residential segment.
The Company launched several new developments, including Tierra Residence, a residential cluster that is part of the Tierra mixed-use development in Darmo Harapan, West Surabaya. Targeting the upper-middle market segment, Tierra Residence is a limited development with only 37 units, featuring a tropical modern living concept. Complementing the Tierra development, the Company also introduced Loop at Tierra, a communal culinary facility. Another key project was the construction of a community center in the Amesta Living residential area, Surabaya, offering public amenities such as a jogging track, playground, commercial areas, and a meeting point.
The Company also introduced Lily by the Lake, a new 1.7-hectare residential cluster located by Dream Lake in Graha Natura, Surabaya. This development consists of 54 two-story houses, available in nine different designs, each with unique dimensions and features tailored to various consumer needs.
Another significant milestone was the Company’s decision to participate in the megaproject development of Ibu Kota Nusantara (IKN) in Kalimantan. In August 2024, we conducted the groundbreaking ceremony led by President Joko Widodo at the Central Government Core Area (KIPP) IKN 1B. This expansion reflects the Company’s strong support and optimism for IKN’s future as a modern and sustainable center for governance and economic activity.
For the IKN project, we are collaborating with strategic partners both technically and financially. Our current plans include developing housing projects for civil servants (ASN) under a Public-Private Partnership (PPP) scheme, as well as mixed-use developments and Transit-Oriented Development (TOD) areas.
We anticipate positive prospects in the housing market and, in response to these trends, we have begun initial preparations for new projects in 2024 in Jakarta and Surabaya. These projects are expected to launch in 2025, taking into account internal readiness, economic conditions, market absorption capacity, and the best timing for consumer introduction.
Amid market uncertainties, the Company is committed to prudent risk management. We adopt a conservative approach in expansion and carefully evaluate new project developments. Resources are utilized strategically to ensure that each business decision effectively supports long-term growth.
On the stock market, Intiland’s shares experienced a 16% decline in 2024. At the beginning of the year, the DILD stock opened at Rp198 per share. By December 31, 2024, the closing price had dropped to Rp162 per share. Throughout 2024, the stock peaked at Rp230 per share on September 24 and reached its lowest point at Rp151 per share on June 25.
To enhance investor relations, the Company held seven investor meetings involving 20 domestic and international investors and analysts throughout 2024. These engagements provided deeper insights into corporate developments and project expansions, strengthening the Company’s presence in the investment community.
The Company implements a cautious financial policy, ensuring a healthy financial structure and adequate funding for both short- and long-term business development. Key financial efforts include debt restructuring with banks through refinancing and credit term extensions. By the end of 2024, the Company’s liabilities had decreased by 13% compared to the previous year. Additionally, we continue to monitor key financial performance ratios, including solvency and capital structure.
Human Resource Development (HRD) remains our top priority, as it plays a crucial role in determining the Company’s success and future. In 2024, we conducted 189 training and development programs, totaling 8,575 learning hours. These initiatives included knowledge management, training workshops, sharing sessions, employee engagement programs, and innovation competitions.
To foster a culture of continuous improvement and innovation, the Company regularly holds innovation competitions. These events provide employees with a platform to propose creative ideas for enhancing work efficiency and business processes. In 2024, 80 innovation projects were submitted, with 10 standout projects selected for further development into new company procedures and work instructions.
IMPLEMENTATION OF CORPORATE GOVERNANCE
We believe that to enhance corporate and shareholder value while achieving long-term growth, business performance must be accompanied by a strong commitment to Good Corporate Governance (GCG). Governance principles serve as the foundation for all corporate entities, in alignment with the Corporate Governance Guidelines issued by the Financial Services Authority (OJK).
In 2024, we continued to ensure the effective implementation of governance principles. This commitment is key to maintaining public trust, as well as the confidence of consumers, shareholders, and other stakeholders. We believe that transparency, accountability, sustainability, and adherence to ethical business standards are fundamental to the Company’s long-term success.
The support and guidance of the Board of Commissioners and other governance bodies play a crucial role in implementing GCG. The Board of Commissioners actively assists the Board of Directors in evaluating strategies, business plans, risk management, and corporate governance. Based on periodic evaluations, the Board of Directors has determined that the internal control and risk management systems have been effectively implemented.
As part of our sustainability efforts, we published the 2024 Sustainability Report, marking the fifth edition of this report. Under the theme “Unlocking Potential with New Initiatives,” this report highlights our commitment to refining our sustainability vision, enhancing transparency, and strengthening sustainable management systems. The report also serves as a tool to boost competitiveness and foster stronger relationships with stakeholders.
In terms of Corporate Social Responsibility (CSR), we remain focused on developing youth potential and empowering communities around our projects. We recognize that CSR is not merely a social initiative, but an integral part of a sustainable business strategy—a long-term investment in society and the environment.
CHANGES IN THE COMPOSITION OF THE BOARD OF COMMISSIONERS AND DIRECTORS
In 2024, there were changes in the composition of the Board of Commissioners and Board of Directors, which were approved and ratified at the Company’s General Meeting of Shareholders (GMS) on May 30, 2024. During this Annual GMS, the shareholders accepted the resignation of Mr. Moedjianto Soesilo Tjahjono from his position as Vice President Director and Ms. Ping Handayani Hanli from her position as Director of the Company. Additionally, the meeting approved the appointment of Ms. Ping Handayani Hanli as a Commissioner of the Company and Ms. Novita Anggriani B. as a Director of the Company, effective from the conclusion of the meeting until the end of the current term of the Board of Commissioners and Board of Directors.
The Board of Directors expresses its gratitude and appreciation to Mr. Moedjianto S. Tjahjono and Ms. Ping Handayani Hanli for their contributions, dedication, and service to Intiland during their tenure as members of the Company’s Board of Directors. We also warmly welcome Ms. Novita Anggriani B. for her willingness and commitment to strengthening the Company’s Board of Directors, as well as Ms. Ping Handayani Hanli for taking on her new role as a Commissioner of the Company.
As a result of these changes, the Board of Commissioners now consists of six (6) members, comprising one President Commissioner, one Vice President Commissioner & Independent Commissioner, two Independent Commissioners, and two Commissioners. Meanwhile, the Board of Directors now consists of seven (7) members, comprising one President Director, two Vice President Directors, and four Directors.
Each member of the Board of Directors possesses competence, experience, expertise, and diverse educational backgrounds, which complement and support one another. This diversity in education, skills, and experience enables each Director to effectively carry out their roles, duties, responsibilities, and authority in leading and managing the Company.
COMPANY AWARDS
The Company is committed to delivering high-quality properties to the community. We are proud of the recognition received throughout 2024 and grateful for the support from all stakeholders.
Poins, a mixed-use development in Lebak Bulus, South Jakarta, won an award from the Jakarta City Transportation Council Awards 2024 for being the best commercial area with top transportation integration facilities. In the capital market sector, Intiland was honored with the Best Sukuk Ijarah award at the Best Sharia Awards 2024, presented by Investortrust.id.
Additionally, in September 2024, the Company received an award in the Infrastructure & Industry Advancement category at the Nawacita Awards 2024, organized by Nawacita Indonesia.
These achievements serve as motivation for us to continue delivering innovation and exceptional services.
CHALLENGES FACED BY THE COMPANY
In 2024, the national economic and investment climate remained relatively conducive, creating opportunities for the property industry to grow. While market demand increased, the Company still faced several challenges, particularly in the high-rise property segment, where apartment sales remained sluggish. Additionally, the Company had to manage a high inventory of ready-to-occupy properties, which needed to be reduced to maintain healthy cash flow and meet sales targets.
To address these challenges, the Company implemented various strategies, including marketing promotions, bulk sales, product re-launches, and the sale of non-core assets. With these measures, the Company remains optimistic about leveraging available opportunities and continuing its growth in 2024.
BUSINESS PROSPECT OUTLOOK
The property industry continues to face challenges but still holds growth opportunities. Economic and political stability, along with high housing demand, serve as strong foundations for sustained growth momentum. The government targets 5.2% economic growth in 2025, with inflation controlled at 2.5%, driven by consumer spending, investment, and government expenditures.
Various policies, such as the three million housing development program and the extension of the tax incentive (PPNDTP), are expected to boost property demand. The Company remains focused on four key strategies: organic growth, acquisitions, strategic partnerships, and capital & investment management. New project developments, increasing sales of ready-to-occupy inventory, and collaborations with strategic partners are among the top priorities.
With extensive experience, strong resources, and a diverse business portfolio, the Company remains optimistic about sustaining growth and seizing opportunities in 2025.
APPRECIATION
On behalf of the Board of Directors, I extend my gratitude to our shareholders, investors, partners, and customers for their trust and unwavering support. We also appreciate the guidance of the Board of Commissioners and Supporting Committees in ensuring good governance and sustainable growth.
My sincere appreciation goes to management and employees for their dedication and hard work, enabling Intiland to successfully execute its strategies and prepare for the challenges of 2025. Aligned with the 2024 Annual Report theme, we are committed to leveraging this year’s achievements as a foundation for a stronger future.
Utama Gondokusumo
Acting President Director