JAKARTA - S&P, an international credit rating agency, upgraded the rating of PT Pakuwon Jati Tbk (PWON) from the initial "BB" to "BB+" with "Stable" outlook.

According to information disclosure issued in Indonesia Stock Exchange (IDX) today (12/9), this achievement is made possible by the favorable projection of PWON's recurring income and solid financial performance.

Recurring revenue of PWON is estimated to increase to cover 70%-75% of total revenue in 2023 and 2024, a constant growth from the 65% portion seen in 2022's revenue.

"We are proud to announce this rating upgrade to BB+, which is the highest rating amongst companies in the real estate property sector in Indonesia," claimed Minarto Basuki, Director and Corporate Secretary of PWON.

PWON has been vigorously expanding its portfolio, starting from acquiring Four Points Hotel in Kuta, Bali in March 2023, to preparing the completion of shopping centres' renovation in Yogyakarta and Solo in 2023 and 2024, as well as establishing and managing the future operation of Pakuwon Mall Bekasi in 2024.

With said projects on hand, S&P predicts that PWON's recurring income could reach IDR 4.5 trillion in 2023, even hitting IDR 4.8 trillion at most in 2024.

As of now, PWON manages a dozen of properties, including Gandaria City and Kota Kasablanka Superblock, Blok M Plaza, Tunjungan City Superblock, and Pakuwon Mall in various regions across Indonesia.

"Our retail portfolio is strengthened by our occupancy rate that has been consistent at over 90%," Basuki mentioned. (ZH)