Bulletin: Kawasan Industri Jababeka's Improving Sales Support Interest Coverage

SINGAPORE (S&P Global Ratings) April 6, 2021--S&P Global Ratings today said that improved domestic demand will push up sales for PT Kawasan Industri Jababeka Tbk. (B-/Stable/--) in 2021. The modest increase in the Indonesia-based property developer's sales will keep its EBITDA interest coverage at 1.5x-1.7x this year. We now forecast Jababeka's marketing sales to be Indonesian rupiah (IDR) 1.2 trillion-IDR1.3 trillion in 2021, higher than our previous estimate of IDR800 billion-IDR900 billion but lower than the pre-COVID level. This includes sales at joint venture Kendal Industrial Park. The company's marketing sales in 2020 exceeded our expectations, backed by a 4x surge in land sales (by value) in the second half of the year, largely fueled by domestic demand. The momentum

...SINGAPORE (S&P Global Ratings) April 6, 2021--S&P Global Ratings today said that improved domestic demand will push up sales for PT Kawasan Industri Jababeka Tbk. (B-/Stable/--) in 2021. The modest increase in the Indonesia-based property developer's sales will keep its EBITDA interest coverage at 1.5x-1.7x this year. We now forecast Jababeka's marketing sales to be Indonesian rupiah (IDR) 1.2 trillion-IDR1.3 trillion in 2021, higher than our previous estimate of IDR800 billion-IDR900 billion but lower than the pre-COVID level. This includes sales at joint venture Kendal Industrial Park. The company's marketing sales in 2020 exceeded our expectations, backed by a 4x surge in land sales (by value) in the second half of the year, largely fueled by domestic demand. The momentum is likely to continue over the next 12 months as the economy recovers. We expect Indonesia's GDP to grow 4.5% in 2021 and 5.4% in 2022. A further improvement in land sales is contingent upon resumption of international...

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