29 Uncertainty hits sales, but outlook still ‘wonderful’
COMPANY Summarecon Agung Tbk PT
BRAND VALUE US $392 million
YEAR ON YEAR CHANGE -12%
INDUSTRY Real Estate
YEAR FORMED 1975
Driven by its corporate motto, “Wonderful Life – Wonderful World”, Summarecon is a property company with three main areas of focus: property development, property management, and recreation and hospitality. It specializes in townships that integrate shopping and office space with residential property and community facilities. In 2017, it opened the new Mövenpick Resort & Spa Jimbaran Bali, the company’s first five-star hotel, and in April broke ground on a township project for the upper middle classes in Boulevard Gading Serpong called M-Town Office. Residential property at the one of the clusters in the new Summarecon Emerald Karawang development sold out in just one day; the Advani Homes Cluster is presented as a destination for healthy and environmentally friendly living. Overall, however, market uncertainty has generally led to consumers being reluctant to buy over the past year, and that has hit Summarecon revenue and profits. Investment in new developments signals positivity about demand returning in the years ahead.
Green projects are at the heart of the company’s CSR work, and in 2016 included participation in Earth Hour, turning off lights in all their buildings during certain hours, running a recycling drive in Kelapa Gading, and providing help to people affected by floods. Summarecon was founded in 1975 by Soetjipto Nagaria, who is now one of the country’s most prominent businessmen and philanthropists. Summarecon is listed on the Indonesia Stock Exchange.