No 24. Lippo Cikarang
    Category: Best of the Best By : Tyler Stuart Read : 3979 Date : Thursday, July 10, 2014 - 06:10:50

    Ahmad Zamroni for Forbes Indonesia

    Most real estate companies are prone to cycles in the property market, but one firm seems immune. With its unique business model, PT Lippo Cikarang has shown growth and stability in a notoriously turbulent industry. Established in 1987 as PT Desa Dekalb, the name was changed to Lippo Cikarang in 1995. Part of the Lippo group, Cikarang is based on a masterplan developed in the 1990s covering about 3,000 hectares that integrates an industrial estate with a township that includes housing and other facilities such as schools, shopping areas, hotels and hospitals. Lippo’s vision, according to the Cikarang site, is to build a “comprehensive township and to create a conducive place to work, live and play.”

    In 2013, Lippo Cikarang’s revenues grew 31% to Rp 1.3 trillion from Rp 1 trillion in 2012. This year, Lippo Cikarang is expected to increase its revenues by 33%. Its net profit also grew 130% in the past two years, from Rp 257 billion in 2011 to Rp 591 billion in 2013. Lippo Cikarang’s stock has risen more than 550% since 2010. These stellar numbers are among the reasons Lippo Cikarang is part of this year’s Best of the Best list.

    The secret to its success? Lippo Cikarang President Director Meow Chong Loh says the company’s growth is due to the right strategy, position and location. “The concept is to build a township, not just an industrial estate,” says Loh. Cikarang now has a residential population approaching 45,000. The long-term goal is to develop a 320-hectare area called Orange County, named after the southern California suburb of Los Angeles. “It’s not about the color orange,” he laughs. “We think that along the eastern corridor of Jakarta, Orange County is going to create a community.”

    A more immediate plan is to create the Lippo Cikarang City Center (LCCC) by 2020—a 13-hectare superblock. The centerpiece of the LCCC is a 62-story building, which will have offices, apartments and a five-star hotel in the top floors. “This is a very comprehensive, integrated development,” says Loh. “Our plan is to have it constructed and able to run in five years time.”

    Before this city center is built, it will be preceded by a current development known as 1B. This project, which is currently under construction near the Cikarang interchange, will include a hypermart, a restaurant, a Japanese school and a cinema. It will be completed by the end of the year.