BeFa Industrial Estate

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.

On 8 June 2017 at Auditorium / Multi Function Room MM2100 Industrial Estate, Bekasi, PT Bekasi Fajar Industrial Estate Tbk (“the Company”) has held the Annual General Meeting of Shareholders of 2016 with the following results:

1. Receive Annual Report as submitted by the Board of Directors including the Board of Directors Responsibility and Supervisory Duties of the Board of Commissioners regarding the conduct of the Company and the Company’s Financial Statements for the year ending on December 31, 2016.
2. Validate the Company’s Financial Statement for the December 31, 2016 audit
3. Determine the use of net income for the year 2016 of Rp 26.3 billion as a reserve and amounting to Rp 33.1 billion or Rp 3.43 per share as cash dividend.
4. Extend the term of the member of the Board of Commissioners and the Board of Directors until the closing of the Annual General Meeting of Shareholders for the financial year ended 31 December 2019.

In 2016, the Company managed to record a pre-sale of 31 hectares of industrial land from a target of 25-30 hectares. For the year 2017, the Company targets pre-sale of industrial land by 30-40 hectares. Until May 2017, the Company has recorded a pre – sale of 12 hectares of industrial land.

BEST remains focused on the development of the industrial estate in the MM2100 Industrial Area, largely supported by the more conducive economic conditions and infrastructure development that supports the industry in Bekasi and its surroundings.

The Company also conducts business development to support activities in industrial areas. Currently BEST has a Modern Logistic Center, Standard Factory Building, Hotel Enso, and BEST office. Hotel Enso is a business hotel with 192 new soft opening rooms in February 2017. While the BEST office has been ground breaking in April 2017 and is expected to start operations in early 2018.

On April 10, 2017, BEST as one of the leading industrial estate developers in Indonesia, has set up the first stone to launch the BEST OFFICE @ MM2100 project at MM2100 Industrial Estate, Cikarang Barat, Bekasi. The development of this office aims to meet the needs of modern office space for tenants, suppliers, banking and other providers.

BEST Office @ MM2100 will stand on an area of 4,170 m2 within the commercial area of the MM2100 Industrial Area, beside Hotel ENSO, a business hotel that commenced operations in February 2017. This office building has 5 floors with a building area of 8,265 m2 and a leased area of 5,641 m2. The investment for this project is around Rp 66 billion.

BEST Office @ MM2100 will be built by PT Daiwa Tetra Manunggal Konstuksi (PT DTMK), subsidiary of Daiwa House Industry Japan as the first project for PT DTMK. This office building is expected to commence in early 2018.

The Company has a vision to become a comprehensive industrial estate developer. In addition to providing industrial land and infrastructure, the Company provides several facilities such as Hotel ENSO, Standard Factory Building, and Modern Logistic Center

On March 27, 2017 BEST has signed the Credit Facility Agreement for a 2.5 billion-dollar loan facility (which can be increased to JPY 5 billion) with Nomura Special Investments Singapore Pte.Ltd. as Original Lender (“JPY Credit Agreement”) with information such as:

1. The loan period is 48 months from the date of first withdrawal or other period as stipulated in the JPY Credit Agreement.
2. Loan Interest Rate is 2% + TIBOR 3 months.
3. Purpose of Fund Use: A minimum of 60% of the JPY loan agreement amount is used to pay a portion of USD 130 million Syndicated loan. The remainder is used to pay the interest reserve, the costs incurred from the JPY Credit Agreement, reimburse / purchase of land, finance the construction of land infrastructure