As Indonesia’s biggest land bank holder with 14,543 ha, Sentul City (BKSL) is set to enjoy solid and sustainable growth on the back of its strategic location, unrivaled infrastructure, as well as strong foreign partnerships. BKSL’s attractiveness lies in its 2,210 ha of ready-to-develop land bank in Bogor, only 50-minute drive from Jakarta’s CBD, and a blend of public and private transportation options. This excellent accessibility creates not only convenience but also rising property prices for Sentul City dwellers. Price drivers also stem from President Prabowo’s residence in Bojong Koneng, located in Sentul City (Figure 3) as well as BKSL’s tie ups with strategic foreign partners: AEON, Sumitomo, Panasonic Gobel, Hankyu Hanshin Properties, and Genting Malaysia Group. On valuation, we expect current 88% discount to RNAV to narrow to 75%, reflecting IDR 200 TP and 125% upside. BUY.

2k ha ready-to-develop land bank close to Jakarta with exceptional accessibility. With total 14,543 ha of hilly land bank offering mountain views and a lush green, cooler environment, BKSL’s 2,210 ha ready-to-develop areas within 3,250 ha self-contained township development, provides pleasant living and nearby relaxation hangouts for Jakartans and Bodetabek residents. Just a 50-minute drive from Jakarta’s CBD, Sentul City in Bogor is within a Transit-Oriented Development (TOD) zone, and this excellent accessibility is further enhanced by the up-coming extension of Harjamukti LRT line to Bogor (Figure 2). Currently connected to the Jagorawi Toll Road, Sentul City also benefits from improved connectivity to industrial areas, through the upcoming Nambo-Cikarang railways and Citeureup-Cikampek toll roads (Figure 1).

Strategic location near Prabowo’s home and partnerships to further raise land prices. Upcoming TOD development and mushrooming of property projects make BKSL’s location extremely favorable, particularly given that Sentul City has 9 strategically located villages including Bojong Koneng, where Mr. Prabowo Subianto resides (Figure 3). Thus, with Prabowo’s presidency, both TOD and LRT extensions should see accelerated completion, as his residence is within Sentul City. This will bring seamless commute of public and private transportation options to residents, workers, and visitors, creating not only convenience but also rising prices for Sentul City dwellers. Another land price catalyst for BKSL is its tie ups with strategic foreign entities: AEON, Sumitomo, Panasonic Gobel, Hankyu Hanshin, and Genting Malaysia Group (Figure 7). With AEON, a partner since 2017, AEON mall is now open and the iconic destination has positively impacted property prices in and around Sentul City (Figure 11). BKSL, together with Sumitomo, Hankyu, and Panasonic Gobel commenced construction of Opus Park apartment in 2023 through their JV, PT Izumi Sentul Realty. Meanwhile, Genting Group is likely to develop multi-purpose property developments including residential, commercial, golf course and premium outlet on top of its 152ha of land in Sumur Batu area within Sentul City.

Initiate with BUY and IDR 200 TP (+125% upside) based on 75% discount to RNAV. Despite revenues nearly doubling from IDR 951bn in 2019 to IDR 1.7tn in 2023, a combination of lower interest rates and excellent property developments should drive YoY average FY25-26F revenue growth of +146% and EPS growth of +1,284%. On valuation, we arrive at IDR 200 TP on narrowing current RNAV of 88% to 75%.  BUY on 125% upside potential to our TP. Risks to our call: 11% VAT incentive discontinuation, delayed infrastructure progress, weaker IDR, and softer GDP growth.