PT Pakuwon Jati, Tbk.
Code: PWON.IJ (Bloomberg), PWON.JK (Reuters)
Upgrade from BB to BB+ outlook stable


On September 11, 2023, the international credit rating agency S&P upgraded the rating of PT Pakuwon Jati ("PWON") to BB+ with a stable outlook from its previous rating of BB.

We are proud to receive the BB+ rating upgrade, which is the highest rating among real estate and property companies in Indonesia.

In their report, S&P stated that the rating upgrade was among others based on PWON's improving recurring revenue performance and solid financial profile.


PWON's Recurring Revenue Performance

One of the reasons for the rating upgrade is the expected increase in PWON's recurring revenue to 70%-75% of total income in 2023 and 2024, compared to 65% in 2022. This increase surpasses other developers in Indonesia, where recurring revenue typically contributes between 10% and 20%.

PWON's sustainable investment portfolio expansion and good asset quality support the company's financial profile.  In addition to the acquisition of the Four Points Hotel in Kuta, Bali in March 2023, the renovation of two malls in Jogja and Solo in 2023 and 2024 is expected to further boost recurring revenue growth. The upcoming launch of Pakuwon Mall Bekasi, set to operate by late 2024, will be a cornerstone of future growth. PWON's retail portfolio benefits from stable operational performance and consistent occupancy rates exceeding 90%.

S&P forecasts recurring revenue to grow by 15% to Rp 4.5 trillion in 2023 and to range between Rp 4.6 trillion and Rp 4.8 trillion in 2024. This level of income is already 20% higher than it was before the pandemic.


Solid Financial Profile of PWON

S&P believes that Pakuwon will maintain a strong liquidity position over the next two years. This is despite a significant step-up in capital expenditure (capex) starting in 2023, however Pakuwon has a track record of maintaining moderate leverage levels in pursuit of its growth strategy.

As of June 30, 2023, Pakuwon had a cash reserve of Rp 7.3 trillion. S&P also estimates annual operating cash flows of Rp 2.2 trillion to Rp 2.4 trillion in 2023. Capital expenditures (capex) are projected to increase to Rp 2.1 trillion in 2023 and Rp 1.5 trillion in 2024, compared to Rp 840 billion the previous year.


Below is the Company’s portfolio:


  • Superblok Gandaria City, Jakarta (pusat perbelanjaan ritel, apartemen, perkantoran dan hotel)
  • Superblok Kota Kasablanka, Jakarta (pusat perbelanjaan ritel, apartemen dan perkantoran)
  • Somerset Berlian, Jakarta (apartemen servis)
  • Blok M Plaza, Jakarta (pusat perbelanjaan ritel)
  • Superblok Tunjungan City, Surabaya (pusat perbelanjaan ritel, apartemen, perkantoran dan hotel)
  • Superblok Pakuwon Mall, Surabaya (pusat perbelanjaan ritel, apartemen, apartemen servis,  dan hotel)
  • Royal Plaza, Surabaya (pusat perbelanjaan ritel)
  • Pakuwon City township (landed residential), Pakuwon City Mall (pusat perbelanjaan ritel), Amor Tower,  Pakuwon City Mall tahap 3 dan East Coast Mansion tahap 2  (pusat perbelanjaan ritel dan apartemen yang sedang dalam masa pembangunan), serta apartemen Educity, di Surabaya Timur
  • Grand Pakuwon township (landed residential) dan Food Junction (Hypermarket, culinary & leisure destination), di Surabaya Barat
  • Superblok Pakuwon Mall, Bekasi (pusat perbelanjaan ritel, apartemen, dan hotel yang seluruhnya sedang dalam masa pembangunan)
  • Pakuwon Mall Jogja dan Yogyakarta Marriot Hotel (pusat perbelanjaan ritel dan hotel)
  • Pakuwon Mall Solo Baru (pusat perbelanjaan ritel)
  • Four Points by Sheraton Bali, Kuta (hotel)




For further information, please contact :

Minarto Basuki (Director and Corporate Secretary) 
PT Pakuwon Jati, Tbk.

Pakuwon City Mall 5th Floor 
Jl. Kejawan Putih Mutiara No. 17, Surabaya
Phone : (6231) 58208788