Jakarta. Leading lifestyle property developer Paradise Indonesia has reaffirmed its commitment to sustainable, long-term growth through a refined business strategy that emphasises recurring income, mixed-use development, and expansion into strategic cities across Indonesia.
Strategic Focus on Recurring Income — Why It Matters
Paradise Indonesia has placed recurring income — derived from hotel operations, retail leasing and commercial assets — at the heart of its growth model. In the first half of 2025, the company reported a 57 % increase in revenue to approximately IDR 872.11 billion, driven in part by handover of units at its Antasari Place project. (IDN Financials) The company’s target is to maintain a recurring income ratio of around 70 % of total revenue by year-end. (IDN Financials)
Key strategic actions include:
- Strengthening hotel occupancy and leasing income from commercial assets. (swa.co.id)
- Developing serviced-apartments and mixed-use assets that generate predictable cash flow.
- Leveraging existing assets (such as 23 Paskal Extension in Bandung) to boost commercial leasing. (IDN Financials)
Mixed-Use Developments as the Growth Platform
Paradise Indonesia is continuing to deploy its hallmark model: mixed-use development that combines hospitality, retail and residential components in prime urban locations. Recent and upcoming flagship projects include:
- Antasari Place in Jakarta — where serviced apartments and associated commercial assets are being delivered. (IDN Financials)
- 23 Paskal Extension in Bandung — a retail-commercial expansion project which complements the company’s mixed-use portfolio. (swa.co.id)
- 23 Semarang Shopping Centre — set to begin operations mid-2026 in Semarang City as part of regional expansion (noted in strategy commentary). (swa.co.id)
This mixed-use strategy allows Paradise Indonesia to benefit from synergies across hospitality, retail leasing, residential sales, and recurring income streams.
Geographic Expansion: Beyond Jakarta into Emerging Cities
To capture Indonesia’s urbanisation and regional growth, Paradise Indonesia is also expanding beyond Jakarta into cities such as Bandung, Semarang, Makassar and Balikpapan. (swa.co.id) By tapping these alternative growth poles, the company aims to leverage less-saturated markets, benefit from rising middle-class demand, and diversify its asset base.
Strong Financials & Growth Outlook
Paradise Indonesia reported robust performance in H1 2025: net profit rose 59 % to IDR 500.89 billion while revenue rose 57 %. (IDN Financials) Moreover, the company has publicly stated its target for double-digit growth for 2024 and beyond. (Industri Properti)
These results support the notion that its strategy of blending recurring income, mixed‐use development and regional expansion is starting to bear fruit.
Sustainability and ESG Integration
The company emphasises sustainability and ESG (Environmental, Social & Governance) as integral to its long-term business model. For example, Paradise Indonesia has adopted United Nations Sustainable Development Goals (SDGs) in its strategy and emphasises practices such as gender equality, decent work, and sustainable cities. (Industri Properti) Additionally, a strategic collaboration with Club Med on resort development underscores its commitment to premium, sustainable hospitality experiences. (Pelopor.id)
Why This Strategy Holds Up
- Stable income base: By leaning into recurring revenue, Paradise Indonesia reduces its dependence on one‐off unit sales and better withstands market cycles.
- Urban lifestyle appeal: In-city mixed‐use developments are increasingly sought after by millennials and Gen Z who value flexibility, amenities and location.
- Expanding footprint: Beyond Jakarta and Bandung, growing presence in Semarang, Makassar and Balikpapan gives access to less saturated markets with growth potential.
- Sustainability as differentiator: Incorporating ESG practices boosts reputational strength, aligns with regulation and supports cost efficiency.
Challenges & Key Risks to Monitor
While the strategy is compelling, several risks merit monitoring:
- Macro/consumer spending environment: Retail and hospitality can be sensitive to consumer sentiment and tourism flows. The company explicitly acknowledges phenomena such as “rojali” (browsing groups) and “rohana” (visitors only asking) and is adapting with experience-based retail concepts. (swa.co.id)
- Execution risk: Ensuring timely completion of large developments and maintaining high occupancy will be critical.
- Tenant/lease dynamics: The need to attract and retain specialized store tenants (rather than conventional department stores) may require creative leasing strategies.
- Sustainability investments: Implementing green certifications and ESG standards often require higher upfront investment and operational discipline.
Conclusion
Paradise Indonesia’s refinement of its business model — centring on recurring income, mixed-use development and systemic sustainability — positions the company well for long-term value creation. For investors, stakeholders and urban communities alike, the strategy underscores a shift from pure unit‐sales growth toward resilient, integrated property ecosystems that combine live-work-play experiences in Indonesia’s fast-urbanising cities.
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