AUGUST 2017 FORBES INDONESIA | 37tial, retail, golf courses and a hos-
pital, which started construction
in 2005 and will be completed in
the next 10 years. Similar long-
term projects are also being de-
veloped in Shenyang, China and
Phnom Penh. However, projects
outside Indonesia are developed
under a different company, be-
cause Candra says it is difficult for
an Indonesian listed company to
invest abroad, as investors prefer
only local investments. Long term,
Candra wants to create another
holding company for the interna-
tional projects that can be listed in
Singapore, to put a public value on
Ciputra’s international portfolio.
Candra has adapted Ciputra
Development to the times. As the
market has softened, high-end
units have suffered the most, so
Ciputra Development has focused
more on the middle-market units,
with prices starting around Rp 1
billion. Another strategy is doing
more joint ventures. As acquir-
ing more land bank by on its own
has become more difficult, Cipu-
tra Development has entered into
more partnerships with existing
land owners. The company will
cover all the construction costs
and give the partner a revenue
sharing scheme.
Long term, Candra remains
bullish on the country’s property
market. The country still suffers
a housing backlog of 13.5 million
units—meaning demand still ex-
ceeds supply. Another issue is that
64 million Indonesians are cat-
egorized as low-income, of which
80% cannot buy their own home
without help in the form of subsi-
dies or mortgages. “If the gov-
ernment can make regulations to
encourage mortgage financing and
help developers get construction
permits, I am sure we can solve
the problem. But it needs a strong
will from the government,” ex-
plains Candra. Even the proposal
from Jakarta governor-elect Anies
Baswedan to build houses under
Rp 300 million with 0% down pay-
ment is possible if the land comes
from government. “It’s a really
good idea and I support it, but I
don’t know if it’s feasible,” says
Candra.
Right now, Ciputra Develop-
ment has a land bank of around 600
hectares in Jakarta and 400 hect-
ares in Surabaya. Land acquisition
is indeed the most challenging part
in the business. This year, Ciputra
Development has put Rp 1.5 trillion
into capital expenditures, drawn
from a mix of internal cash and
bank loans. Half of the capital has
been allocated for land acquisition
and the other half is for developing
commercial projects.
As for competition, several for-
eign companies from China, Singa-
pore, and Japan have entered the
market, but as foreigners are not
allowed to own land, they face an
uphill battle. Meanwhile, competi-
tion from local developers doesn’t
worry Candra much. “We’ve been
doing this for more than 30 years,
we are used to it,” says Candra
with a smile.
As the successor to his father,
Candra continues his father’s cre-
do: integrity, professionalism, and
entrepreneurship. “What we do
since we are small is deep rooted in
our soul. The property business is
like that for me. I might be interest-
ed in other things besides property,
but my family business focuses on
property, so I follow that,” he says
him. “We have to do the business
in the right way, be focused and
work hard. The success of the busi-
ness depends on people who run
it.” That said, the Ciputra group
has expanded into media and tele-
com, but the core remains property.
“Property is still a good business.
So clearly, we will stay in a busi-
ness that we see a bright future,”
says Candra. -- Shintya Felicitas14
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