JAKARTA - PT Plaza Indonesia Realty Tbk (PLIN) allocates a capital expenditure (Capex) of Rp 50 billion in 2019. This budget is lower than in the previous years, at Rp 62 billion in 2018 and Rp 54 billion in 2017.
Lucy Suyanto, Director of PT Plaza Indonesia Realty Tbk (PLIN) stated that the Capex is for the maintenance and hotel building renovation. "The funds come from internal cash flow. As about hotel, it will be renovated maybe by the end of the year, while for the renovation of Grand Hyatt, the plan is to get some financing from banks," said she, in Jakarta.
According to Suyanto, the company does not have any plan to expand its business in 2019, due to the declining trend in property sector. "The industry is stagnant and we are still discussing the projection for the property sector," she added.
In 2017, Plaza Indonesia recorded revenue of Rp 1.60 trillion, declining from Rp 1.65 trillion as recorded during the same period of 2016. The decline was mainly because of the decreasing revenue of mall and lifestyle sector; declined by 2.94%, from Rp 824.28 billion in 2016 to Rp 800 billion in 2017 (LK/AR/W).