Corporate Governance

Risk Management

To mitigate risk factors, the Company makes the following efforts:

Risk of Land Availability for Development
To anticipate the risk of limited land, the Company actively implements a selective land acquisition strategy in accordance with the Company’s strategy, both through information obtained from property sales agents, information from within the Company, or by directly visiting the target area and negotiating with the owner to obtain land in the target area at an optimum price according to the condition of the land. The Company also seeks opportunities to cooperate in developing third-party land through joint ventures or joint operations with companies that have land in areas that are in accordance with the Company’s strategy.
The Company always maintains the quality of the products produced, both in terms of building quality and supporting facilities in the real estate developed to meet the needs of buyers. In addition, the Company also continues to innovate in the products it produces, so that it is hoped that the public will make the Company’s products the main choice in considering real estate purchase plans.
In carrying out land acquisitions, the Company carries out verification and research before deciding to make an acquisition, in order to avoid the possibility of disputes and lawsuits that will occur in the future. If it is felt that the land to be acquired has the potential for a lawsuit, the Company will look for alternatives on other land with an ownership status that is not problematic or has the potential to be problematic in the future.
In the Company’s efforts to overcome these risks, the Company follows developments and understands government regulations and policies. The Company also has an anticipatory strategy for various potentials that may arise from new regulations. The Company will also be active in property professional organizations so that it can proactively provide input to the Government for future regulations so that they remain conducive to the property business. The Company also ensures that all required permits and legalities will always be fulfilled by the Company.
The Company can control this risk by conducting business relations with other parties that have credibility, establishing verification policies from credit authorities, and monitoring the collectibility of receivables periodically to reduce the amount of uncollectible receivables.
The Company realizes that in order to ensure business continuity, the Company’s human resources are a valuable asset for the Company. To increase the loyalty of its human resources, the Company ensures that the human resources it has receive the rights they should receive, and the Company always complies with applicable employment regulations.
The Company strives to always conduct research and development and make comparisons with similar property companies, so that there is always innovation in attractive products that make the Company different from its competitors.
To minimize the risk of credibility, the Company will always maintain and improve the quality of every property project developed by the Company, where the Company will strive to complete the project according to plan and have high quality. In terms of completing the project according to the Company’s plan, the Company always conducts an analysis and feasibility study in advance of each of the Company’s property project prospects and immediately clarifies and resolves any problems that arise.

As an effort by the Company to maintain all of the Company’s projects so that they continue to be implemented and are free from project plans that cannot be completed or are delayed. In this case, the Company does several things, including:

  • The Company always carries out planning and comprehensive and careful market studies for all plans to develop the Company’s business activities.
  • Maintaining and maintaining good working relationships with the main contractors.
The Company mitigates the risk of dependence on contractors by always expanding its network with other contractors who have work quality that meets the standards set by the Company. In addition, the Company regularly carries out quality control on the work results of its contractors in order to maintain the standards of the housing units it develops.
The Company always monitors economic conditions and trends in the real estate industry in order to anticipate slowdown in sales. In addition, the Company also continuously plans the development of its projects, thus providing a positive impact on the stability of its sales records.
The Company determines stricter payment provisions, such as requiring a larger down payment or shortening the installment period to reduce dependence on installment payments. In addition, it develops an early warning system to detect possible late payments, so that the collection team can immediately take proactive action to contact customers and remind them of their payment obligations.
The Company conducts regular monitoring of existing receivables to ensure that collections are made on time. A proactive receivables evaluation system can help identify problems early on.