SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUT TEKNOLOGI
Business Leadership Executive
MBA Business Economic
BANDUNG

APARTMENT OF

AGUNG PODOMORO GROUP

Syndicate 6 :
Arthika Mahanani
Dadang Soewargono
Samuel Supandi Bely
Satriyo Wibowo
Simon Mantiri

Supply and Demand

Demand forecasting 2011:

28,650 x 4 x 110% (pesimist) = 126,060

Microeconomics
Consumer Behavior
Society in need of residence in the heart of the city, close
to the office/ activity centre
Unavailability of space for residence with affordable price
Increasing economy status of society, in need of luxury in
lifestyle

Producer Behavior
To accomodate demand:
In 2011, 11.200 middle class apparment is built in 19
locations in Jakarta
In 2012, even more
3

Microeconomics
Market
Its an oligopoly market. There are competitions out
there, but APG remain the biggest among others, and
entry barrier is about capital
Local Competitor: Agung Sedayu, Ciputra Group, etc
Factor Market
Economic Growth in Indonesia
BIs Interest Rate is lower (6.5%) compare to
previous year (7.2%)

Microeconomics
General Equilibrium
Its the equilibrium between demand and supply
Rusunami
: IDR 140-180
million
Middle Class Appartment : IDR 300-500 million
Upper Cass Appartment : > IDR 1 billion

Long Run Investment

Risk Analysis

Exchange rate risk

Liquidity risk
Credit risk
Comodity risk
Interest rate risk
Competition risk
Operational and Legal risk

Capital Budgeting

Conclusions
Apartment market (especially in Jakarta) is
promising right now, with annual growth 1015%.
Good atmosphere of macroeconomics
(such as BI rate, exchange rate, increasing
income)
Agung Podomoro is ready to compete and
become the market leader because of
experience and strong financial backup