BeFa Industrial Estate

On June 30, 2021, PT Bekasi Fajar Industrial Estate Tbk (the “Company”) held its Annual General Meeting of Shareholders (“GMS”) at Enso Hotel, MM2100 Industrial Estate, Bekasi. On the same occasion, the Company also held a Public Expose. One of the decisions of GMS was approval in the change of composition of Board of Commissioners and the Board of Directors to become as follows:

Board of Commissioners:
President Commissioner and concurrently Independent Commissioner : Mr. I Gusti Putu Suryawirawan
Vice President Commissioner and concurrently Independent Commissioner : Mr. Herbudianto
Independent Commissioner : Mr. Wahyu Hidayat
Commissioner : Mr. Hartono

Directors:
President Director : Mr. Yoshihiro Kobi
Deputy President Director : Mr. Leo Yulianto Sutedja
Director : Mr. Daishi Asano
Director : Mrs. Swan Mie Rudy Tanardi

In addition, it was also determined that there would be no dividend distribution for the financial year ending on December 31, 2020 because the Company suffered a loss in 2020.

During 2020, the Company reported that there were no sales of industrial land (marketing sales) due to delays in investment and business expansion due to the Covid-19 pandemic. In 2020, the Company’s total revenue was Rp 242.3 billion with the largest contribution coming from maintenance fees, service charges, water, and rental income of Rp 114.8 billion. The company recorded a net loss of Rp 115.2 billion in 2020.

Even though the economy is in the process of recovering, the Covid-19 pandemic is not over yet. The company targets marketing sales of 10-15 hectares with an average selling price of Rp 2.6 million-3.2 million/m2. The company has added marketing sales of industrial land in the 1st quarter of 2021 to an area of ​​0.5 ha and is targeting stable recurring income growth for the rest of the current year. The Company’s target market is mainly in industries that are relatively resistant to the impact of the pandemic, such as data centers, logistics, and food & beverages industries.

The Company’s strategy is to continue to focus on the industrial estate business. With more than 30 years of experience in developing industrial estates, the Company still believes in the potential needs of business players for professional and reliable industrial estates. Especially in the Bekasi MM2100 Industrial Estate, the Company will continue its development, including development of infrastructure and facilitie, while also taking advantage of the surrounding infrastructure development to increase the value of the area. As commonly known, the MM2100 Area will be passed by the JORR II CIbitung – CIlincing, and residents of the area will obtain the benefit of addition of access and connectivity in MM2100. In addition, the MM2100 area will also benefit from the government’s future infrastructure plans such as the LRT, the Jakarta-Cikampek South Toll Road, the Tanjung Priok expansion project and the construction of the Patimban Port.

On 14 August 2020, Annual General Meeting of Shareholders of PT Bekasi Fajar Industrial Estate Tbk (“BeFa”) approved 2019 net profit to be recorded as the retained earning to strengthen the Company’s capital structure. On the same day, BeFa also held a Public Expose.

During 2019, BeFa achieved sales of 16 hectares of industrial land. The Company’s total income was Rp. 951 billion with the largest contribution from the sales of land worth Rp. 796 billion, with a net profit of Rp. 380 billion.

In the midst of a challenging Covid-19 pandemic, BeFa projects moderate performance for 2020 and has revised sales target to 10 – 15 hectares, by targeting the land sales in the second half 2020.

The potential of manufacture industry investment and other businesses such as logistics is in line with the huge growth in domestic demand, especially in the MM2100 Industrial Estate.

As it is already known, the MM2100 Industrial Estate will be passed by JORR II Cibitung – Cilincing and the tenants of the area will enjoy the benefit of having the additional access and connectivity at MM2100. In addition, the MM2100 Industrial Estate will get the advantage from the government’s future infrastructure plans for the Jakarta – South Cikampek toll road, the Tanjung Priok expansion project and the construction of the Patimban Port.

Changes on the Composition of the Member of Audit Committee

The Company has changed the composition of the member of Audit Committee pursuant to the Decree of  the Board of Commissioners No. 030 / B / SP-Kom / BeFa / V / 2019 dated May 28, 2019 as follows:

Changes on the Composition of the Member of Nomination and Renumeration Committee

The Company has changed the composition of the member of Nomination and Renumeration Committee pursuant to the Decree of the Board of Commissioners No. 031 / B / SP-Kom / BeFa / V / 2019 dated May 28, 2019 as follows:

On May 3, 2019, PT Bekasi Fajar Industrial Estate Tbk (“BeFa”) convened an Annual General Meeting of Shareholders and an Extraordinary General Meeting of Shareholders at the MM2100 Bekasi Office.  On the same occasion, the Company also held a Public Expose.

One of the results of the AGMS was the approval of a cash dividend of Rp 84,413,972,563 or Rp 8.75 per share with a dividend payout ratio of 20%. In addition, the AGMS also approved the appointment of the Company’s management with a four-year term so that the composition of the Company’s management become as follows:

President Commissioner and Independent Commissioner                   : Marzuki Usman
Vice President Commissioner                                                                       : The Nicholas
Independent Commissioner                                                                          : Herbudianto
Independent Commissioner                                                                          : Wahyu Hidayat
Commissioner                                                                                                   : Hartono

President Director                                                         : Yoshihiro Kobi
Vice President Director                                                : Leo Yulianto Sutedja
Director                                                                           : Wijaya Surya
Director                                                                           : Daishi Asano
Director                                                                           : Swan Mie Rudy Tanardi

During 2018, BeFa achieved the industrial land sales of 35 hectares in line with the 2018 target of  35-45 hectares. For 2019, the Company expects the growth of land sales to be 40 hectares. The company has not added the sales of industrial land in the first quarter of 2019 but targets to book more land sales, especially in the second semester of 2019.

In terms of finance, in 2018 the Company recorded a total revenue of Rp 963 billion, slightly decreasing compared to 2017 at Rp. 1 trillion, mainly due to the effect of the decline in industrial land sales in 2018.

For 2019, the Company targets 10-15% sales growth while maintaining an EBITDA margin of around 60% and a net profit margin of 40-50%. In the first quarter of 2019, the Company increased sales to Rp 247 billion, stabile EBITDA of Rp 127 billion and net profit of Rp 95 billion.

BeFa will continue to focus on the industrial estate business. Especially in MM2100 Bekasi area, BeFa will continue the development, including to develop the facilities and utilize the surrounding infrastructure development to increase its industrial estate value. As it is known, MM210 area will be passed by the JORR II Cibitung – Cilincing and the residents of the area will benefit from such additional access and connectivity in MM2100. In addition, MM2100 area will also benefit from the Jakarta-Cikampek flyover, the Jakarta-South Cikampek toll road, the Tanjung Priok expansion project and the construction of the Patimban Port.

To respond the industrial estate needs and as a sustainable growth strategy, BeFa will still follow up its plan to open a new industrial estate area with due observance to the prudential principle.

On August 24, 2018, PT Bekasi Fajar Industrial Estate Tbk. (BeFa) conducted mangrove planting activities as a follow-up to activities in 2015. These activities, which rehabilitated the environment in the fishponds and surrounding areas, were carried out in the synergy between BeFa and PT Megalopolis Manunggal Industrial Development (MMID) through MM2100 Cares, with the participation of the following tenants from MM2100 industrial Township:

1. PT Bekasi Fajar Industrial Estate Tbk.
2. PT Megalopolis Manunggal I.D
3. PT Asahi Best Base Indonesia
4. PT Rhythm Kyoshin Indonesia
5. PT FDK Indonesia
6. PT Mandom Indonesia Tbk.
7. PT Sumitomo Wintec Electric Indonesia
8. PT JOTUN Indonesia
9. PT Posmi Steel Indonesia
10. PT Nusa Toyotetsu Corporation
11. PT MMC Metal Fabrication
12. PT Emsonic Indonesia
13. PT Trouw Nutrition Indonesia
14. PT Kayaba Indonesia
15. PT Shei Tai Industrial
16. Lotte Grosie
17. PT Essar Indonesia
18. PT Indonesia Caps and Closures
19. PT JX Nippon Oil & Energy Lubricants Indonesia

Around 13,000 mangrove trees were planted in Pantai Bahagia Village, Muara Gembong District, Bekasi. This activity was carried out in collaboration between the Forum Pencinta Alam Kawasan Industri (“Forum for Industrial Estate Nature Lovers” or FPAKI), MM2100 and the #Savemugo Muara Gembong Movement.

The priority is currently mangrove planting at the mouth of the river, given the existing threat of coastal abrasion, the benefits of mangrove forests for the environment and life there, among others as a refuge and spawning ground for shrimp and fish, and to absorb greenhouse gas emissions.

With the recent mangrove planting, it is expected that other CSR programs such as education, social, health and community will be carried out together through MM2100 Cares with tenants in MM2100 Industrial Estate and other companies / institutions, to provide better results either directly or indirectly to the community segments that need assistance.

The program collaboration with various parties concerned with the sustainability of the Bekasi coastal ecosystem in and its surroundings is also expected to continue.

On May 9, 2018, in the MM2100 Industrial Zone Auditorium / Multipurpose Room, Bekasi, PT Bekasi Fajar Industrial Estate Tbk (the “Company”) held its Annual General Meeting of Shareholders for the 2017 Fiscal Year 2017 with results as follows:

1. Approved and accepted the Annual Report as submitted by the Board of Directors including the Board of Directors’ Accountability Report and the Board of Commissioners’ Supervisory Report regarding the Company’s operations and the Company’s financial administration for the financial year ended December 31, 2017.
2. Ratified the audited Financial Statements of the Company for the period ended 31 December 2017
3. Determine the use of net income for cash dividends in the 2017 financial year in the amount of Rp 96.47 billion or Rp 10.00 per share.