“ I believe that the property industry will bounce back within a year to two years because the demand for property continues to increase. ”
In 2006, we had the mitigation for the Lapindo case and part of the resettlement group offered compensations in the form of a house thus at the time we provided 2,000 houses as part of the programme. At the time, the resettlement programme was viewed as a trigger to rebuild the city. Later on we obtained a 2,000-hectare land in order to build a city development project called Kahuripan Nirwana City. The Sidoarjo government created a master plan in keeping with their aim to revamp the city in which our project was included as part of the local government’s initiatives. Kahuripan Nirwana began construction in 2008 and when I became President Director, I participated even further in the development of the project. As such, in 2012 we developed a commercial venue area along a strip of road as well as a semi-outdoor food court area that has become highly-popular. Through the popularity of this area, I began selling shop-houses followed with a number of exhibitions in Surabaya and surrounding areas. In fact, during one of the exhibitions that we carried out in Ciputra Mall in Surabaya, our company managed to secure 40 billion IDR in sales within one week. We continued this marketing strategy which resulted in extraordinary sales results.
We have a large land bank in which we have began building smaller-sized properties and numerous food & beverages shops; this measure serves as a means for us to tap into the secondary market in Indonesia. We understand the importance of providing added value to our customers with every home purchase.
We have established a disciplined corporate culture and this belief enables us to maximise our efforts in realising our mission. Mutiara Masyhur Sejahtera invests in our human capital through wide-ranging training programmes in addition to self-development support. As such, I am confident that our working culture would allow us to achieve the company’s goals.
East Java remains the most attractive region for our company to tap into especially given the region’s future development projects that have been put in place by the government. The government is aiming to turn Surabaya into Indonesia’s next megapolitan city after Jakarta, therefore, East Java will be impacted by this future plan. As the current government forges ahead with their infrastructure projects around this area, we are confident that strong growth trajectory is on the horizon for East Java.
I believe that the property industry will bounce back within a year to two years because the demand for property continues to increase. Based on my industry experience, property sales have decreased, however, buyers will remain thus providing our company with various sales opportunities. As an example, Mutiara Masyhur Sejahtera recently built a 3-tower apartment residence which our company successfully benefitted from through solid sales results. Despite the slowdown in the property industry for a number of esteemed industry players, Mutiara Masyhur Sejahtera continues to enjoy healthy sales growth which gives us optimism.
Tax remains an area that I believe should be prioritised by the government in order to support the property industry. Most recently the Jokowi administration levied the BPHTB tax for property costing more than 2 billion IDR which will certainly boost our industry. Given the sensitivity of taxes for the property industry, tax will remain encompassed as an area that the local government should continue to assists us with.
While our company continues to anticipate the possible impact from the ASEAN Economic Community, we also remain open in encouraging our regional partners to come to Indonesia for investment and business reasons namely for the development of Sidoarjo. We recognise that in order to fully develop our city development project, we would need to partner with other local as well as regional companies.
Mutiara Masyhur Sejahtera remains open-minded in partnering with overseas firms. Moving forward, we hope to initiate cooperation with an international partner that will assist us in further developing our city project. As a company that aims to creating a sustainable city for the Kahuripan Nirwana residential area, we are certainly looking forward to receiving support for capital investment, technology transfer in addition to technological advancements from an international company to realise this goal.
Mutiara Masyhur Sejahtera manages a well-conceptualised residential project in Sidoarjo and we can offer robust investment opportunity for this project. We invite prospective partners to work with us so we are able to fully carry out our corporate vision for the Kahuripan Nirwana project.