JAKARTA. Starting early next year, Ciputra Group's three listed companies: PT Ciputra Development Tbk (CTRA), PT Ciputra Surya Tbk (CTRS) and PT Ciputra Property Tbk (CTRP) will be officially merging under the banner of CTRA.

CTRA have prepared the agenda for expansion throughout 2017 after the merger. In the next year, CTRA allocated capital expenditure (capex) of Rp 4 trillion.

Actually, this number is not much different than the number of capex for this year. However, the company has just spent 60% of the capex, said President Director of CTRS Harun Hajadi, Tuesday (27/12).

Assuming the 2016 capital expenditure is Rp 4 trillion, then issuers of Ciputra Group have just been using as much as Rp 2.4 trillion funds.

The 60% capex absorption was caused by the delays of the launchings of several projects, such as reclamation project in Makassar and a number of office construction projects. Furthermore, Ciputra Group once had to postpone land acquisition to increase its land bank.

Target of the next year

In 2017, Ciputra will allocate the capex to develop several projects, such as apartment in Yogyakarta and new projects in the area of 200 hectares in Cileungsi. Ciputra will also realize the reclamation project in the first half of 2017.

Ciputra expect that the sales in 2017 will increase, thanks to tax amnesty program. "Our marketing sales target for the next year increases by 10%-15%,” said Director of CTRA Tulus Santoso, Tuesday (27/12).

Head of Research of Asjaya Indosurya Securities William Surya Wijaya estimated, the merger will strengthen the position of CTRA. The merger will expand the market capitalization of CTRA, as well as enhance the opportunity to compete against other players. “The competition will be very open. Let alone, demands for housing remain high,” William said. (Muhammad Farid/Translator)

Editor: Barratut Taqiyyah Rafie