asia-invest.info

In the first quarter of 2008 PT Bakrieland Development posted a net profit increase of 116.5% to IDR 30.1 billion from IDR 13.9 billion in the same period of 2007.

The profit increase was attributed to a 83.4% rise in sales from IDR 111.4 billion in the first quarter of 2007 to IDR 204.3 billion in 2008. Bakrielands operating profit also grew 159.2 % to IDR 50.8 billion compared to IDR Rp 19.6 billion in the first quarter of 2007.

CEO Hiramsyah Thaib expects to meet the revenue target of IDR 1.1 trillion.

PT Bakrieland Development is a publicly listed property developer and develops real estate and resorts projects for the middle-to-high-income markets, such as Rasuna Epicentrum in Kuningan, South Jakarta, and the Legian Nirwana Suites and Residences in Kuta, Bali. Additionally to several middle-lower-income residential properties, such as the Sentra Timur Residence in Pulogadung, East Jakarta the company also invests in infrastructure projects.

In 2007 the country’s gross domestic product (GDP) expanded by 7.3%. This was the fastest pace in the last three decades.

In 2008 Simon Yuen, regional economist of Standard Chartered Bank expects the economic growth to drop dramatically to 4.1% because of the slowdown in the US economy.

While inflation was 2.8% in 2007 he expects inflation to rise to 6.2% in 2008 and 4.1% in 2009., accelerating from 2.8 percent last year. From the 5.5-percent average the first three months of 2008, Yuen said inflation could surge to 8.1 in the second quarter due to record high levels of oil and rice.

“Nonetheless, the Philippine economy will remain resilient and is still poised to register strong growth versus negative external conditions,” the economist said. It will be critical how the Government will deal with inflation, low interest rates and high commodity prices.

The Philippines is the world biggest rice important and among with other Asian countries highly affected by high food and crude oil prices.