Right Place, Right Time, Right Company

PT Lippo Karawaci Tbk

Indonesias Largest Property Group

Third Quarter 2011 Results

Leaders in Residential Homes, Retail Malls, Hospitals, Hotels, Asset Management

Disclaimer
This presentation has been prepared by PT Lippo Karawaci Tbk (LPKR) and is circulated for the purpose of general information only. It
is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of LPKR. No
warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in
this report constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or
liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part
of the contents of this presentation and neither LPKR nor any of its affiliated companies and their respective employees and agents
accepts liability for any errors, omissions, negligent or otherwise, in this presentation and any inaccuracy herein or omission here from
which might otherwise arise.
Forward-Looking Statements
The information communicated in this presentation contains certain statements that are or may be forward looking. These statements
typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements
involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this
presentation. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in
Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia,
including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of
capital and capital availability; the anticipated demand and selling prices for LPKRs developments and related capital expenditures and
investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in
customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy
changes; LPKRs ability to be and remain competitive; LPKRs financial condition, business strategy as well as the plans and objectives of
LPKRs management for future operations; generation of future receivables; and environmental compliance and remediation. Should one
or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or
projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in
production, capacity or performance might not be fully realized. Although LPKR believes that the expectations of its management as
reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given
that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements
speak only as of the date hereof, and LPKR undertakes no obligation to update or revise any of them, whether as a result of new
information, future events or otherwise.
1

Contents
Page
Biggest & Fastest Growing Property Company
Shareholders & Business Structure
Summary of Portfolio
Diversified Landbank & Projects
Most Integrated Business Model in Indonesia Property Sector
Highly Experienced & Professional Management
Our Portfolio
On A Transformational Journey
Financial Performance
Appendices

4
5
6
7
8
9 17
18
19 25
27 44

Biggest & Fastest Growing Property Company

Largest listed property Company by Revenue (US$330 million)1 and Market Cap
(US$1.8 billion)2. Revenue and Net Income for Full Year 2010 : US$354 million and
US$60 million, respectively.

Fastest growing real estate group (Market cap grew by 7x to US$1.8 billion2 since
the merger of 8 property related companies in 2004). Market leaders in townships
& residential property, hospitals, and retail malls.
Most integrated business model with ability to recycle capital, and largest
diversified landbank throughout Indonesia.
Only Property Company rated by three rating agencies (B+ by Standard &
Poors, B1 by Moodys, B+ by Fitch).
Included in MSCI Global Small Cap Indices, FTSE Emerging Market Indices & major
Indonesia Stock Exchange Indices : LQ45, Jakarta Islamic Index, Bisnis-27 and
Kompas-100.
Strong International Partners (RZB & SingHealth) and Shareholders.
Award winning Developer.
1For

3Q2011

2as

at 30 Sep 2011

Shareholders & Business Structure

of Outstanding Shares : 23,077,689,619

Lippo Related
Companies
25.5%

Fidelity Investment
7.2%

As at 25 Oct 2011

CP InlandsimmobilienHolding GmbH (CPI)*

4.9%

Public
62.4%

*Property arm of Austria Raiffessien Bank (RZB)

Recurring Revenue

Development Revenue
Residential & Urban Development
Lippo Villagepg.10
Lippo Cikarangpg.10
Tanjung Bungapg.10
San Diego Hills Memorial Parkpg.10

Kemang Villagepg.11
St. Moritzpg.12
City of Tomorrow

Hospitals

Commercial

Siloam Hospitalspg.13

Retail Malls - pg.15

Aryaduta Hotelspg.16
Town Mgmt. Services,
Leisure & Restaurants

Asset Mgmt.
REIT, Mall & Hotel
Managementpg.17

Summary of Portfolio
Residential and Urban Devt.

Hospitals

Landbank Inventory : 1,517 ha

Development rights : 7,826 ha
Land already acquired : 4,827 ha
> 5,000 units of residences under
development
High quality infrastructure and
environmentally friendly

7 hospitals with 1,275 beds under

the Siloam Hospitals network

20 hospitals in the pipeline

National and international

accreditation

Commercial

Owns and manages 25 malls

(GFA of 2.2million sqm)
15 malls in the pipeline
Owns and manages 7 hotels with
1,444 rooms
858 rooms in 4 hotels in the
pipeline

Asset Management
Revenue
: Rp 2,907 bn
Operating Profit : Rp 623 bn
NPAT
: Rp 481 bn
Total Assets
: Rp 18,623 bn
Market Cap
: Rp 15.7T (US$1.8bn)1
One of the Top Listed Companies by
Trading Value

Manages 2 REITs (First REIT &

LMIRT)

Asset Under Management:

~US$1.3bn

US$2bn in the pipeline

Source : Financial Results 3Q2011

1as

at 30 Sep 2011

Diversified Landbank & Projects

PHILIPPINES
THAILAND
- Grand Palladium Medan
- Sun Plaza
- Plaza Medan Fair

PACIFIC OCEAN
MALAYSIA

Binjai Supermall
Aryaduta Hotel Medan

MALUKU

SINGAPORE

SULAWESI

Aryaduta Hotel Pekanbaru

KALIMANTAN
Siloam Hospitals Jambi

PAPUA
NEW
GUINEA

Siloam Hospitals Balikpapan

IRIAN JAYA

Tanjung Bunga Township

Palembang Square

GTC Makassar

JAVA

City of Tomorrow, Surabaya

Siloam Hospitals Surabaya

Malang Town Square

- Istana Plaza
- Bandung Indah Plaza

INDIAN OCEAN

Mall at Kuta Beach, Bali

Siloam Hospitals Bali

EAST
TIMOR

PROJECTS IN GREATER JAKARTA

JAVA SEA

N
NORTH

Pluit Village JAKARTA

CENTER OF
JAKARTA
PX Pavillion@St.Moritz
Gajah Mada Plaza
St. Moritz
Metropolis Town Square
Aryaduta Hotel Jakarta
Lippo Village Township Siloam Hospitals Kebon Jeruk
The Plaza Semanggi
Aryaduta Hotel & Country Club
Kramat Jati Indah Plaza
WTC Matahari
Siloam Hospitals Lippo Village
Lippo Cikarang Mall Lippo Cikarang
Royal Serpong Village
SOUTH JAKARTA
Township

AUSTRALIA

WEST JAKARTA

BANTEN
PROVINCE

Kemang Village

EAST
JAKARTA

Pejaten Village

Siloam Hospitals
Lippo Cikarang

Bekasi Trade Mall

Tamini Square

WEST JAVA
PROVINCE

Cibubur Junction
Depok Town Square

San Diego Hills

Memorial Park

Bellanova Country Mall

Eka Lokasari Mall
Puncak Resort

Urban Development
Large Scale Integrated Development
Retail Malls Managed by LK
Retail Malls Owned by LK
Hospitals
Hotels
Toll Road

Most Integrated Business Model in Indonesia Property Sector

PROPERTY
OPERATION

DEVELOPERS
Most of Indonesian
Developers
Developer, Operator and
REIT & Portfolio Mgrs

Most of Indonesian
Developers

REITs

Integrated Projects
Across Property
Value Chain

Proven Experience &

Track Record
Sustainable Financing &
Prudent Financial Mgnt.
Capitalizing on Group
Synergies
Sophisticated
Marketing

Existing Landbank &

Proactive Land
Acquisition

PROJECT :
- Residential
- Industrial
- Commercial
SERVICES :
- Healthcare
- Hospitality
- Leased Malls

Development
Income
Buyers :
- Individual
- Corporate
Recurring
Income
Middle income and
upper market segment

THIRD PARTIES

Development and Operating Capabilities Across the Spectrum of Real Estate Products

Highly Experienced & Professional Management

BOARD OF COMMISSIONERS

Theo L. Sambuaga
Chairman

BOARD OF DIRECTORS

Ketut B. W.
President Director

Surjadi Soedirdja
Vice Chairman

Agum Gumelar

Tanri Abeng

Tjokro Libianto

Jopy Rusli

E. Yudhistira S. Djoko Harjono

R. Feliciano

Ivan S. Budiono

SENIOR EXECUTIVES OF BUSINESS UNITS

Farid Harianto

Jonathan L. P.

Viven Sitiabudi
MC Loh

Gershu Paul

Juergen Fischer

Michael King

Our Portfolio

Residential & Urban Development

LIPPO VILLAGE @ Karawaci
Jakarta West

LIPPO CIKARANG

TANJUNG BUNGA

Jakarta East

Makassar, South Sulawesi

54.37% ownership

Development Rights :
3,066 ha
Land already acquired :
1,175 ha
Landbank inventory :
292 ha
Homes built
: > 11,700
Population
: 57,344
Jobs
: 45,000
110 km roads built, 56,025 trees planted,
21% green space

Residential
Development Rights :
1,610 ha
Land already acquired :
1,425 ha
Landbank inventory :
575 ha
homes built
: > 10,000
Population
: 32,000
Jobs
:
7,000
of factories
:
Global Names
:
-

SAN DIEGO HILLS MEMORIAL PARK & FUNERAL HOMES

50.3% ownership
Industrial
Development Rights : 1,500 ha
1,421 ha
Land already acquired :
640 ha
1,299 ha
Landbank inventory :
326 ha
139 ha
homes built
: >3,000
Population
: 6,500
Jobs
: 5,000
105,000
706
Hankook, Danone, Epson
Sanyo, KIA Motors

Karawang, West Java

Master Plan
Land already acquired
Landbank inventory
Launched
Sold (Jan07- Sep11)

: 500 ha
: 125 ha
: 102 ha (+ 14 ha family center and lake)
: Jan 2007
: 102,868 sqm (23,477 units)

10

Residential & Urban Development

KEMANG VILLAGE
Siloam Hospitals

The Tiffany

The Cosmopolitan

250 beds

205 Units

254 Units

The Ritz

South Jakarta
(2007 2016)

The Metropolitan
JW Marriot Hotel

190 Units

Condominium

- A Landmark Project -

Phase 1 : 8.8 ha
GFA
: 500,000 sqm
Launched : 28 Jul 2007

275 rooms

Office

The Infinity
179Units

Country Club
The Intercon
400Units

The Empire

International
School

277Units

SPH
Intl School
Phase 3 : 2.3 ha

Condominium
Phase 2 : 3.7 ha
(KV West)
KV Mall
Condominium

Construction Progress

Artists Impression

Sold
(As of 30 Sep 11)

The Ritz

The Cosmopolitan

The Empire

The Tiffany

The Infinity

The Intercon

93%
Rp 397 bn

95%
Rp 369 bn

95%
Rp 315 bn

95%
Rp 558 bn

90%
Rp 339 bn

99%
Rp 347 bn

Payment Profile :
- Cash in full
: 23%
- Bank mortgage
: 54%
- 12-36 Monthly Installment : 23%

11

Residential & Urban Development

Construction Progress

ST. MORITZ
- The New Crown Jewel CBD West Jakarta
(2008 2018)
Land size
GFA
Launched

65-storey building consists of :

- JW Marriot Hotel (208 suites)
- Office

: 11.4 ha
: 1,000,000 sqm
: August 2008

International
School

Sold
(As of 30 Sep 11)

Royal Suites
220 units

New Royal Suites

197 units

Presidential

Ambassador

Royal

Presidential
Suites

Ambassador
Suites

Royal
Suites

New Ambassador
Suites

New Royal
Suites

96%
Rp 397 bn

92%
Rp 257 bn

99%
Rp 307 bn

69%
Rp 301 bn

66%
Rp 226 bn

New Ambassador Suites

Presidential Suites

144 units

140 units

Ambassador Suites

Payment Profile :
- Cash in full
: 16%
- Bank Mortgage
: 48%
- 12-36 Monthly Installment : 36%

134 units

Wedding
Chapel

- Country Club
- Spa

Sea World

Siloam Hospitals

Artists Impression

Convention Center

Shopping Mall

12

Premier Private Hospital Group with World Class Healthcare Facilities

Siloam Hospitals Lippo Village1

MRCCC Siloam Semanggi2

Location
: Jakarta West
JCIA
Bed Capacity
: 250 beds
Medical Staff
: 214 GP and Specialists & 395 nurses
Centers of Excellence : Neuroscience & Heart Center

Location
Bed Capacity
of Floor
Floor Area
Grand Opening

Siloam Hospitals Kebon Jeruk1

Siloam Hospitals Jambi

Location
: West Jakarta
Bed Capacity
: 205 beds
Medical Staff
: 217 GP and Specialists & 322 nurses
Centers of Excellence: Urology & Orthopaedic

Siloam Hospitals Surabaya1

Location
Bed Capacity
Medical Staff
Center of Excellence

: Central Jakarta
: 375 beds
: 29 floors
: 52,606 sqm
: 7th July 2011

Location
Grand Opening
Bed Capacity
Medical Staff

83% ownership
: East Sumatra
: February 2011
: 100 beds
: 48 GP and Specialists & 97 nurses

Siloam Hospitals Balikpapan

Location
Bed Capacity
Medical Staff

: Surabaya, East Java

: 160 beds
: 260 GP and Specialists & 254 nurses
: Fertility Center

79.6% ownership
: East Kalimantan
: 110 beds
: 22 GP and Specialists & 103 nurses

Siloam Hospitals Cikarang2

Location
Bed Capacity
Medical Staff
Center of Excellence

: Jakarta East
: 75 beds
: 77 GP and Specialists & 108 nurses
: Occupational Health

1Property sold
2Property sold

to FREIT in Dec 2006.

to FREIT in Dec 2010.

13

Progress Report Hospitals pipeline

Siloam Hospitals Balikpapan

Under renovation, in operational

Siloam Hospitals Palembang

Artists Impression

Siloam General Hospital

Artists Impression

Construction Progress

Siloam Hospitals Makassar

Artists Impression

Construction Progress

Construction Progress

Siloam Hospitals Bali

Artists Impression

Construction Progress

Siloam Hospitals Manado

Artists Impression

Construction Progress

14

Dominant Position in Retail Property & Property Management Industry

Manages 25 malls throughout Indonesia

*owned by LPKR

2.2mn sqm GFA, 938,000 sqm NLA

over 15,000 total units
Average occupancy 87% (97% in LMIRT properties) as of 30 Sep 2011
100% ownership in LMIRT Management

15

Growing Market Share through Aryaduta Brandname

Hotel Aryaduta
Jakarta

Hotel Aryaduta
Medan

of room : 284 rooms

of room : 194 rooms

Hotel Aryaduta
Pekanbaru

Hotel Aryaduta
Lippo Village1

Hotels under

Mgmt.

Hotel Aryaduta
Semanggi

Hotel Aryaduta
Makassar

of room : 273 rooms

of room : 226 rooms

Hotel Aryaduta Palembang

of room : 97 rooms

of room : 197 rooms

of room : 173 rooms
1The

property is owned by FREIT

16

Asset Management Unique for Property Company

PT Lippo Karawaci Tbk
80%

22.2%

100%

29.6%

100%

100%

Bowsprit Capital
Corporation Ltd.

LMIR Trust
Management Ltd.

PT Consulting &
Mgmt. Services Div.

PT Aryaduta
International Mgmt.

REIT Manager

REIT Manager

Mall Mgmt. Services

Hotel Operator

Mgmt. Fee :
- 2% p.a. of the gross
revenueof the retailmalls.
- 2% p.a. of the Net
Property Incomeof
the retailmalls.
- 0.5%p.a. of the retailmalls
in lieu of leasing commission.

Fees :
Fees consists among
others Management Fee
and Incentive Fee which
computed based on
certain percentage from
Revenueand
GOP, respectively.

Mgmt. Fee :
- Base fee :
0.4%p.a. of the valueof
theDepositedProperty.
- Performancefee :
5.0%p.a. of the Net
Property Income.
- Investment& Divestmentfee.

Mgmt. Fee :
- Base fee :
0.25% p.a. of the value
of the Deposited Property.
- Performancefee :
4.0% p.a. of the Net
Property Income.
- Investment& Divestmentfee.

17

Lippo Karawaci : On A Transformational Journey

1. Transforming US$3 billion to US$8 billion in 5 years.
2. Performance and promotion to double Lippo Karawacis Market Cap in short term.
Build significant Leadership Premium.
3. Globalize Lippo Karawaci Investor Base.
4. Strengthen Residential / Township Group.

5. Realize US$3 billion Retail Malls Group.

6. Transformational Hospital Group scale-up to US$3.5 billion in 5 years.
7. Build a US$3-5 billion Asset Management / REIT Group in 5 years.

8. More focus on Asset-Turn Deals. Realize Maximum Value for Hotel Group.
Build Strong Recurring Extraordinary Earnings.

18

Financial Performance

Strong Financial Performance

TOTAL REVENUE
Rp 4.71 trillion

(in Rp trillion)

NET PROFIT AFTER TAX

TOTAL ASSETS

(in Rp billion)

(in Rp trillion)

Rp 701 billion

Rp 18.62 trillion
16.16

3.13
525
2.57

388

2.55

11.79

371

10.53

353

2.09

2007

12.13

2008

2009

2010 3Q11
Annualized*

2007

2008

2009

2010 3Q11
Annualized*

2007

2008

2009

2010 30 Sep 2011

*based on financial projection

STOCKHOLDERS EQUITY

NET TOTAL BORROWING

CASH ON HAND

(in Rp trillion)

(in Rp billion)

(in Rp trillion)
3.66

Rp 9.29 trillion
7.71

Rp 2.91 trillion

1,493

1,351

4.89
4.50

811

4.21

Rp 812 billion

2.03

1.70

1.53

(284)
2007

2008

2009

2010 30 Sep 2011

2007

2008

2009

2010 30 Sep 2011

2007

2008

2009

2010 30 Sep 2011

20

Income Statements 3Q2011 & 3Q2010

Revenue 3Q11 : Rp 2,907 bn
Revenue 3Q10 : Rp 2,229 bn

EBITDA 3Q11* : Rp 684 bn

EBITDA 3Q10* : Rp 517 bn
* After deduction of deferred income (in relation with the Sale &
Lease back transaction with FREIT in 2006)

Rp billion

Rp billion

42%
1,428
18%

352

1,004
894

274

760
16%
258 300

Residential &
Urban Development

Hospitals

Commercial

38%
207

Asset Mgmt.

113

97 112

285

65

Residential &
Urban Development

NPAT 3Q11 : Rp 481 bn

NPAT 3Q10 : Rp 349 bn

Hospitals

Commercial

81

107

Asset Mgmt.

21

Structure of Revenue & EBITDA

Revenue 3Q2011 Rp2,907 bn

10%

EBITDA 3Q2011 Rp684 bn

10%
49%

31%

16%
16%

52%
16%

Residential & Urban Development

Hospitals

Commercial
Asset Management

A well-diversified business model provides a strong foundation for stability and growth
22

Balance Sheet

In Rp billion
Cash & Cash Equiv.

30 Sep 11

31 Dec 10

Variance

2,914

3,660

-20%

18,623

16,155

15%

Debt

3,726

3,376

10%

Shareholders Equity

9,292

7,710

21%

D/E Ratio

0.40

0.44

Net Gearing Ratio

0.09

Total Assets

23

Debt Maturity Profile

Back-ended Debt Maturity Profile
USD million
450.0
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
-

395.6

(1)

11.3

12.5

2011

2012

0.6
11.9

2013

2014

2015

3.4

5.1

2016

2019

Bank ICBC Indonesia

Sigma Capital Pte Ltd Bond

Bank Negara Indonesia

Bank Central Asia

Bank Pembangunan Daerah Kalimantan Timur

Low refinancing risk due to long debt maturity profile

24

Attractive Asset Value

Ownerships (%)
URBAN DEVELOPMENT :
100.0
Lippo Village
54.4
Lippo Cikarang
50.3
Tanjung Bunga
100.0
San Diego Hills
100.0
Micro Suburbs
Sub total
LARGE SCALE INTEGRATED DEVELOPMENT :
85.0
City of Tomorrow (retail & apart. inv.)
90.0
Kemang Village
100.0
St. Moritz
100.0
Others (land, retail space inv. & other devt.)
Sub total
RETAIL MALLS :
100.0
Pejaten Village
80.0
Mall at Kuta Beach, Bali
100.0
Retail space inventory
Sub total
HOSPITALS :
FREIT
- 4 Hospitals
83% & 79.6%
- 2 Hospitals (Jambi & Balikpapan)
100%
- 2 Hospitals under construction
Sub total
HOTELS :
FREIT
- 1 Hotel
100.0
- 4 Hotels
Sub total
REIT Units
Est. Total Asset Value
Add : Cash
Less : Debt
Less : Advances from Customers
Est. NAV

Land Area (Ha)

430
763
328
103
24

15.0
11.4

Assets Value1 (Rp bn)

11,933
6,281
4,455
1,385
245
24,299
363
2,839
2,033
1,811
7,046
481
169
578
1,229
4,122 2
660 2
48
4,830
342 3
751
1,093
1,908 4
40,405
2,914
(3,726)
(2,240)
37,353

Appraised by Knight Frank

as of 31 Dec 2010

Business Value with 15% WACC

Business Value with 17% WACC

Market value as of 30 Sep 2011

25

Marketing Sales
In Rp billion
Residential & Urban Devt :
Lippo Village
Lippo Cikarang
Tanjung Bunga
San Diego Hills
Sub Total
Condominium :
Kemang Village
St. Moritz
City of Tomorrow
Park View Apartment
Sub Total
Retail Inventory
TOTAL

3Q 2009

3Q 2010

3Q 2011

283
250
67
54

236
415
150
77

130
947
197
99

654

879

1,372

189
76
5
-

291
337
-

391
377
1
120

270

628

889

(20)

931

1,486

2,268
26

Appendices

Indonesia : Building Momentum

Demographic Profile of Indonesia &
the Developed Nations in 2010

Indonesia Economic Indicators

Economic Growth (%)

Inflation Rate (%)
Exchange Rate (Rp/US$)
SBI Rate (%)

2008

2009

2010

Male

20111

6.3

6.1

4.5

6.1

6.5

6.59

11.06

2.78

6.96

5.65

9,124

9,672

10,326

9,084

8,700

8.00

9.25

6.50

6.50

6.502

Source : Statistics Indonesia, Finance Department, Bank Indonesia

1Revised State Budget
2Sept 2011

Female

Age Group

2007

% of Total Population
Source : Economist Intelligence Unit, ING REIM Research &
Strategy as of June 2011

Despite the current financial turmoil that is taking place, predominantly in the US and
the Eurozone, Indonesias macro economy continued to enjoy a solid performance in
3Q11. This was bolstered mainly by high export value, robust domestic consumption
and strong investment.
Controlled inflation and low interest rate environment led to a more optimistic
business environment.
On the back of positive macroeconomic achievement, Indonesia is expected to receive
investment grade rating in the next 12-18 months (currently just one notch below
investment grade).
The positive perception on Indonesias economy and its massive potential will
continue to boost FDI and the inflows into portfolio investment.
Source : Jakarta Property Market Review, 3Q 2011
Jones Lang LaSalle Research

28

Indonesia Property Sector has Room to Grow

Rising Real Disposable Income

Rapid urbanisation
Growing middleclass
Strong savings and income growth
Low mortgage penetration
Property as investment
Improving regulatory environment
Banking innovation
Property prices cheapest in the region
Highest yields in the region

Source : Economist Intelligence Unit, ING REIM Research & Strategy as of June 2011

ASIA PACIFIC APARTMENT

Capital Value (US$/sqm)
Hong Kong

19,323

Singapore
Bangkok

Manila

Rental Yield

16,727
3,300

2,407

Manila

7.63%

Kuala Lumpur

6.93%

Bangkok

Jakarta

1,781

Hong Kong

Kuala Lumpur

1,546

Singapore

Source : Global Property Guide

10.21%

Jakarta

6.49%
3.23%
2.94%

29

Indonesia Property Sector

LAND TITLES AVAILABLE :
1. Freehold

: may be held by Indonesian citizens only (not even by fully Indonesianowned companies).
2. Right to Build (renewable leasehold) : may be held by Indonesian citizens and any company established in
Indonesia for an initial 30 years.
3. Right to Use (renewable leasehold) : may be held by Indonesian citizens, any company and foreign
citizens, for an initial 25 years.

OPTIONS FOR FOREIGN OWNERSHIP :

1.
2.
3.
4.
5.
6.

Establish a company with approval for full or part foreign ownership (PMA company) to own the property.
Purchase the property in your own name under Right to Use title.
Through Indonesian nominees, establish a locally owned company.
Use an Indonesian professional third party corporate nominee.
Private unregistered lease.
Establish a person to person arrangement with an Indonesian private individual who will personally own the
property.

30

Overview of Jakarta Condominium Market

In line with the growing economy and better sentiment resulting from low interest rate environment, the Jakarta residential market enjoyed
solid performance in 3Q11.
In terms of area distribution, the CBD had the highest portion of strata condominium supply, representing 25.7% of the total inventory. In
the secondary area, North Jakarta dominated the market, representing 23.2% of the total stock, followed by West Jakarta (20.8%), Central
Jakarta (15.8%), South Jakarta (13.6%) and East Jakarta with a mere of 0.9% of the total inventory.
The increase in demand combined with minimum new launches had triggered some developers to raise their condominium price. This has
caused market average price to increase slightly by 4.8% over the previous quarter. By end-September 2011, condominium prices in Jakarta
averaged IDR 14.8 million per sqm.
Source : Jakarta Property Market Review, 3Q 2011
Jones Lang LaSalle Research

31

Overview of Jakarta Retail Market

RENTAL RETAIL CUMULATIVE SUPPLY AND OCCUPANCY

RENTAL RETAIL SUPPLY DISTRIBUTION

Demand in the retail market grew positively throughout 3Q11, supported by good economic conditions which helped generate consumer
spending and lifestyle in the city.
With no additional supply to the market, the occupancy of rental shopping malls in Jakarta increased from 86.7% to 88.1%. The level of
confidence among retailers has increased continuously on the back of a more positive business sentiment.
Retail rents continued to grow positively, the effective base rent in 3Q11 increased by 1.9% q-o-q to IDR 415,484 per sqm/month. The
average gross rents in the quarter rose to IDR 482,858 per sqm/month.
Source : Jakarta Property Market Review, 3Q 2011
Jones Lang LaSalle Research

32

Indonesia Healthcare Landscape

1. Population size (as of 2009): 232 million
2. Significant public sector investment over the last five years Universal social health coverage

(Askes, Jamkesda and Jamkesmas)

3.

Growth of mobile health centers (Puskesmas) and IPD reimbursements for government and private
hospitals.
Healthcare Expediture
Government
(USD bio)
Private (USD bio)

2007e

2008e

2009e

2010e

2011e

2012e

2013e

2014e

5.2

6.0

7.2

7.9

8.5

9.3

10.2

11.2

5.0

5.7

7.0

7.5

8.1

8.9

9.8

10.6

4. Infant mortality dropped from 118/1000 births in 1970 to 30/1000 in 2009

5. New challenges as a result of social economic changes, eg: rising Non-Communicable Diseases
6. New reform agenda for promoting education and prevention
33

Indonesia Healthcare Infrastructure

Infrastructure
Total Number of Hospitals
Private Hospitals
Public Hospitals
Total Beds / Beds per 10,000*
GPs / GP per 100,000
Specialists / SPs per 100,000
Nurses & Midwives

2007

2008

2009

CAGR %
(2007 2009)

1,319

1,372

1,406

3.2%

667

673

685

1.3%

652
142,707
6.3
44,378
19.6
14,599
6.5
256,290

699
149,538
6.5
44,759
19.5
15,722
6.8
291,992

721
153,519
6.6
47,930
20.7
16,764
7.2
327,413

5.2%
3.7%
3.9%
7.2%
13.0%

Source : Indonesian Department of Health, Frost & Sullivan

* Jakarta 15.5 beds/10,000

34

Regional Comparison
Indonesia Singapore Malaysia
Population

China

India

Korea

Thailand

Australia

USA

UK

240 Mio

4.8 Mio

27 Mio

1.35 Bio

1.2 Bio

48 Mio

67 Mio

21 Mio

314 Mio

61 Mio

Physician / 100,000

29

183

94

142

60

197

30

299

267

274

Nurse & Midwife / 100,000

204

590

273

138

130

529

152

959

982

1,030

Hospital Beds / 100,000

60

310

180

410

90

1,230

220

380

310

340

Birth Rate / 100,000

1,810

850

2,108

1,229

2,097

855

1,295

1,233

1,383

1,229

Death Rate / 100,000

626

495

493

703

748

626

729

688

838

933

240

31

38

230

18

48

24

12

3,000

200

600

1,700

5,000

500

1,400

400

700

500

3,720

49,780

13,710

6,890

3,250

27,310

7,640

38,210

45,640

37,230

Health Spend as a %
of GDP

2.3

3.3

4.3

4.3

4.2

6.5

4.1

8.5

15.2

8.7

% Government Expenditure

54.4

34.1

44.1

47.3

32.4

53.9

74.3

65.4

47.8

82.6

% Private Expenditure

45.6

65.9

55.9

52.7

67.6

40.2

25.7

29.1

52.2

17.4

% OPE

70.3

94.3

73.2

82.6

74.4

87.1

68.1

61.6

24.4

63.7

MMR
(per 100,000 live births)
IMR
(per 100,000 live births)
Per Capita (US$)

35

Unrealized Market
Total Expenditure on Health as % of GDP
4.3%
3.5% 3.3%

3.2%

3.4% 3.5%

Legend:
2000
2006

3.6% 3.4%

2.5%
1.6%

Source:
World Health Statistics 2009

Indonesia

Malaysia

Singapore

Thailand

SE Asia

Per Capita Total Expenditure on Health (USD)

$1,536
$1,151

$37

$82

Indonesia

$289

$544

Malaysia

$172 $264
Singapore

$58

Thailand

$85

SE Asia

Indonesia Health Indicator

Health Expenditure as % of GDP
Per Capita Health Expenditure (USD)

2007
2.5
38

2008
2.3
42.5

2009
2.3
48.6

2010
2.7
52

Source : IMF, CIA World Fact Book, Indonesian Department of Health, Frost & Sullivan

36

Construction Progress Kemang Village

The Ritz

The Cosmopolitan

The Empire

The Tiffany

The Infinity (Footprint)

The Intercon (Footprint)

100% completion

Mall Facade

100% completion

100% completion

Main Lobby

40% completion

Hotel
Landscape

As of 30 Sep 2011
37

Construction Progress St. Moritz

Presidential Tower

Ambassador Tower

Royal Tower

60% completion

77.5% completion

65% completion

As of 30 Sep 2011
38

Lippo is One of Indonesias Largest Business Group

Regional presence in China, Macau,

Hong Kong, Philippines, Korea, Singapore

Indonesia

Retail

Property

Others

Retail

Property

Others

Hypermart PT Lippo Karawaci Tbk First Media

Matahari Residential & Urban Development
Hospitals
Commercial (Retail Malls & Hotels)
Property & Portfolio Management

8th largest Indonesian Business Group,

US$11bn portfolio
39

Lippo Karawacis Milestones

December
Capital raising activity
Corporate developments
Establishment of REITs

1990

June

January

Initial Public
Offering of
30.8 mn shares

1st Rights Issue of

607.8 mn shares
at Rp 500/share,
issued & listed on
the JSX and SSX

1993

January

November

December

June

The listing of First

REIT on the SGX,
offering 271.4 mn
units at price of
SGD 0.71/unit

Total 1,055 mn
warrants are fully
exercised,
generating total
cash of Rp 923 bn

3rd Rights Issue of

4.32 bn new
shares at
Rp 550/share,

Non Pre-emptive
Rights Issuance of
1.45 bn new
shares at
Rp 660/share,

March

November

May

March

2nd Rights Issue US$ 250 mn bonds

of 881.9 mn
issuance, at the
new shares
rate of 8.875% p.a.
at Rp 1,050/share issue price 100%,
due 2011

1996 1997 1998 2002

2004

2005

2006

US$ 125 mn bonds

US$ 270 mn bonds
issuance, at the rate of issuance, at the rate
of 9% p.a. offered at
9% p.a. issue price
108%, due 2015
100%, due 2015

LMIRT was listed

in SGX, sponsored
by the Company

2007

2008

2010

October

January

June

July

September

January

August

Established
under the name
PT Tunggal
Reksakencana

Started
Lippo Village
Township

Started
Tanjung Bunga
Township

Merger of 8
property-related
companies, in
Property, Healthcare &
Hospitality business

Launched City of
Tomorrow (CITO),
its first large scale
integrated devt.,
in Surabaya

Launched
San Diego Hills
Memorial Park

Launched The
St. Moritz, a large
scale integrated
development in
West Jakarta

October

September

July

December

Started
Lippo Cikarang
Township

Launched its first

retail strata-titled
project, and
followed by
7 others

Launched
Kemang Village,
a large scale
integrated devt.
in South Jakarta

Opening of
Pejaten
Village, its first
leased mall, in
South Jakarta

2011

40

Award Winning
2008
Euromoney Real
Estate Award :
BestDeveloper
in Indonesia

2005
Euromoney Real
Estate Award : Best
Developer in Indonesia
& #9 in Asia Pacific
Region

2007
Euromoney Real
Estate Award :
Best Developer in
Indonesia

2008
Euromoney Real
Estate Award :
Best Developer in
Indonesia

2006
IMAC Award :
Best Developer
2006
2006
Indonesia Property Investor Award :
Watch Award :
Best Indonesia
Golden Project
Listed Property Co.
Achievement
Developer with the
most Complete facility

2009
Euromoney Real
Estate Award :
BestDeveloper
in Indonesia

2009
Euromoney Real
Estate Award :
Best Developer in
Indonesia

2009
SWA100 The Wealth
Creator Award :
1st among The Best Public
Companies Based on RWA
(Relative Wealth Added)
and One of The Best Public
Companies Based on WAI
(Wealth Added Index)

2010
Euromoney Real
Estate Award :
2nd Best Developer
in Indonesia

2010
Euromoney Real
Estate Award :
2nd Best Developer
in Indonesia

2011
Euromoney Real
Estate Award :
Best Developer in
Indonesia Overall

2010
Frost & Sullivan Award:
Healthcare Services
2010
2011
Kemang Village Provider of the Year
Asian Hospital
for Best Practices
received the
Management Award :
FIABCI Indonesia
Excellence Award 2011
Prix D'Excellence
Awards for Best
Future Project

41

Share Price Performance

Volume (Shares)

Closing Price (Rp)

1,000
900
800
700
600
500
400
300
200
100
-

600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
-

Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10
May-11
Jun-11
Sep-11

(LPKR.JK ; LPKR IJ)

Average Daily Trading Value Jan 2011 - Sep 2011 (in US$)
12,000,000

1,779

10,000,000

1,725

Market Cap as at 30 Sep 2011

in Comparison with Peers
(in US$mn)

8,000,000
6,000,000

877

4,000,000

507

779

887

744

2,000,000
-

Jan

Feb

Mar

Apr

Source : Indonesia Stock Exchange

May

Jun

Jul

Aug

Sep

Lippo
Karawaci

Bumi
Serpong
Damai

Bakrieland
Ciputra
Summarecon Pakuwon Jati
Agung
Development Development
Agung
Podomoro

42

20 Top Listed Companies by Trading Value

Period : January 14 October 2011

Source : IDX Presentation October 2011

43

Investor Relations
MARK WONG (DIRECTOR)
email : Mark.Wong@lippokarawaci.co.id
PETER LEMBONG (DIRECTOR)
email : PeterL@lippokarawaci.co.id
Address :
Menara Matahari, 22nd Floor
7 Boulevard Palem Raya
Lippo Village
Tangerang 15811
Banten Indonesia
telp.+62 21 25669000
fax. +62 21 25669099
website : www.lippokarawaci.co.id
44