Good morning, everyone. Please welcome equity investors, bond investors, regulators, and credit rating agencies to PT Lippo Karawaci Tbk Nine Months 2024 Earnings Call. Today, as a moderator, I'm Randi as the Head of Investor Relations. With me today, we have Mr. John Riady as the Group CEO and also Mr. Daniel Phua as the Group CFO. Today, we will present our nine months 2024 result, followed by questions and answers. During the presentations, you may drop your questions on our [inaudible]. Without further ado, please invite Daniel to continue the presentations. Thank you. Daniel, sorry, please unmute.
Okay, good morning, everyone. Welcome again, dear analysts and investors. I mean, thank you for your continued support. Today, I will take you through our nine m onths 2024 results for 2024. We are very excited to share with you. I think the company has continued its trajectory, and we have continued to fulfill, I guess, what we've promised the market in regard to ongoing restructurings and providing improved business offerings and looking at ways to improve both the margins and the ways that we are running our business. So starting by giving a business overview, it's important to highlight that I think all three key segments of our businesses are performing well. Starting with real estate, the nine m onths 2024 marketing sales are currently sitting at IDR 4.25 trillion. This is 79% of the full-year target.
We therefore are definitely ahead and on track to be able to achieve the full-year marketing sales target that we have set for ourselves. Revenue and EBITDA for real estate have booked a 2% year-on-year increase. Again, some of that is affected by timing of handovers. But so far, as I will present later on in the real estate segment, that the handover has been on time. The strategy continues to be the sale of affordable housing products. And we have seen we have continued to launch a new product concept, including the XYZ and the Q Series that has been taken up very well, has been a high take-up by the public. And we are committed to continue to innovate, continue to be able to build on the successes that we have had in Park Serpong and being able to implement similar concepts in the other business areas.
For example, we have implemented the XYZ series in Makassar as part of our GMTD businesses over there, and the sales receptions of that have been exceptional as well. Moving on to healthcare. Now, for the healthcare results, I'm focusing on the nine months 2024 result for healthcare, assuming that the healthcare is not deconsolidated. Now, as most of you already know, as I presented in Tokyo, from June onwards, due to the transactions that have happened with the strategic divestment of Siloam, Siloam will no longer be a consolidated entity, but it will be treated as an associate. We still hold close to 30% of Siloam. It is therefore still a very important and strategic investment for us.
In this case, in order to provide a like-for-like comparison, I'm going to tell you the nine months 2024 results compared to the nine months 2023 results on a like-for-like basis, assuming that they are not deconsolidated. Now, on that basis, you will notice that the revenue, underlying EBITDA, and underlying NPAT all went up. Yeah, the revenue went up by IDR 9.12 trillion, or 11%. EBITDA by IDR 2.38 trillion, or 9% year-on-year. The underlying NPAT went up by IDR 1.1 trillion, or 12% year-on-year. This is a testament to Siloam's successful execution of its Siloam 5.0 strategy, which has basically allowed us to build up the acuity of our services, allowed us to continue to improve on our clinical care and the quality of our offerings.
We have currently just finished the planning of Siloam's five-year plan for the next five years, which we have called Next Gen Siloam, which we will share with you in further detail in the following deck as well, which we believe would also provide further engine for growth for Siloam going forward. The inpatient admissions, outpatients, and visits have all improved year-on-year compared to nine m onths 2023. Those are key anchor points for the improved performance for Siloam. Lifestyle has similarly performed well. The nine m onths 2024 revenue is booked at IDR 1.02 trillion, and that is a 13% increase year-on-year. Malls revenue improved by 3% year-on-year to IDR 506 billion, while the revenue from hotels improved by 13% year-on-year to IDR 357 billion. The footfall and traffic continue to improve in our malls. We now average about 10.4 million visitors per month, and the mall occupancies are stable at about 80.1%.
Hotel has been also performing well. The occupancy is at a stable average of 67% for nine months 2024, while the average room rate actually saw an 8% increase year-on-year. This is actually higher than our pre-COVID 2019 level. Now, on a pro forma basis, again, coming back, just to remind you, pro forma means that if I assume that Siloam was not deconsolidated, I think that's important to provide a like-for-like comparison of business performances. You will see that basically all segments have improved generally, I mean, from the year before. Looking at the EBITDA, real estate improved by 2%, healthcare by 9%, lifestyle relatively flat, with Holdco, some expenses obviously would have increased compared to the year before. On the whole, if you look at it on a pro forma basis, EBITDA improved by 6% and revenue improved by 7%.
Obviously, on a non-pro forma basis, if we were to exclude and include the effect of the deconsolidation of Siloam, the results would have decreased, so therefore, we think it is more important to look at the underlying NPAT and the NPAT to give investors a clearer picture of how the business is performing. Now, if we look at it on the underlying NPAT level, now, underlying NPAT, just a reminder, is basically we want to exclude a lot of the non-operational and one-off events, and the key amongst these, obviously, for nine m onths 2024 would be the sale and deconsolidations and resulting gain from the divestment of Siloam. S o by excluding the effect of that divestment, I mean, we then come up with the underlying NPAT, which reflects the base business performance. Now, as you can see from an underlying NPAT perspective, real estate improved by 2%.
Now, healthcare obviously decreased by 38% due to the deconsolidation of Siloam. Yeah, we would not have the same nine months result for Siloam. In fact, we only have about six months, which means that like-for-like, the underlying NPAT contributions from the healthcare segment would decrease. But what is important to highlight is that you notice that the Holdco, right? Holdco is basically where we park all our interest expenses, where we park our share of profit from associates. Now, the drop in Siloam is more than made up for by the increase in Holdco. Yeah, so the improvement in Holdco is due to two main factors. Obviously, the decrease in interest expenses as a result of the paying down of debts and bonds that I have explained to the market previously. And also, obviously, the share of profit from Siloam as an associate.
So again, what we lost in here, we more than made up for at the Holdco level. Yeah, and you will see also that lifestyle as a segment has also improved by over 100% by IDR 83 billion. So all in all, basically, we have close to 500% improvement in regard to our underlying NPAT for nine m onths 2024 versus nine m onths 2023. Now, note, for example, in nine m onths 2023, we were still doing - IDR 105 billion. Yeah, so that has seen a turnaround. And this is based on underlying business performances not related to one-off events, for example, like the disposal of Siloam, like the FX and so forth, which we excluded. Yeah, so by looking at the underlying business performances, you have seen a significant turnaround in the way the business operates, such that we are now in a stable, positive underlying NPAT for the nine m onths 2024.
Now, obviously, if you look at the NPAT level, the quantum is even larger. We are now sitting on an NPAT of IDR 18.7 trillion. Yeah, this is again over 2,000% increase. Now, a lot of that obviously is due to the divestment of Siloam, right? So it is a one-off event, but it does help to lift our retained earnings into the positive territory as well. So I do believe that that is significant. Yeah, but I think more importantly, we should focus on the underlying NPAT performances. As you can see, this is a very strong underlying NPAT of IDR 411 billion for nine m onths 2024 after the deconsolidations and following some paydown of debt.
Now, on the statutory revenue and EBITDA level, as I alluded to earlier, if you were to look at the statutory report, you will see that the revenue and EBITDA would have dropped 25% and 27% respectively, I mean, for nine m onths 2024 versus nine m onths 2023. Now, coming back, as I mentioned earlier, this is largely due to the effect of losing Siloam, right? If we did not lose Siloam, as you can see on a pro forma basis, both revenue and EBITDA would have improved as a whole. Underlying NPAT, as I alluded to earlier, improved from - IDR 105 billion to IDR 411 billion, with NPAT currently sitting at IDR 18.7 trillion. The EBITDA by segment is also stable. As you can see, healthcare is stable at 26%. Real estate improved slightly from 25% to 26%, whereas lifestyle margins improved from 22% to 27%.
All in all, I would say that the business performance is solid, and we are continuing to improve year-on-year. The structural change with the divestment of Siloam, along with the paydown of debt, has improved the overall operational performance of the business. Both the business operations and the structural improvement have led to the higher earnings that we can report for this year. This is another different view of looking at the same pictures. Again, for the revenue, if you were to look at it on a statutory perspective, as you can see, compared to, let's say, two years ago, there's a decrease of 12%. But if you would look at it on a pro forma basis, it's an improvement of 26%. EBITDA is an improvement of 60% and the GP 30%. NPAT and underlying NPAT I've covered earlier.
A key difference in the underlying EBITDA is that we excluded the IDR 300 billion write-down that Siloam performed in Q1 of 2024. If you recall, I've again explained to the public that there was a one-off adjustment that Siloam performed during Q1 of 2024, whereby it looked at some of the hospitals that was in the pipeline pre-2019, whereby they were cost committed. But Siloam has now decided that they will not go ahead with those hospitals. We have decided to do a one-off write-down of those construction in progress. And there was a one-off adjustment in Q1 of this year. The underlying EBITDA basically excludes those one-off adjustments in order to get to a more like-for-like comparison in regard to business performances.
Now, due to the strong performance from the business operations going from revenue down to EBITDA, as you can see, operating cash flow has also seen significant improvement. Operating cash flow went from IDR 662 billion in nine m onths 2023 to IDR 1.15 trillion in nine m onths 2024. Now, that is a 74% improvement compared to what we were doing previously. Yeah, now, a lot of that obviously benefited from improved business operations. We also have better sales collections from, for example, the Park Serpong projects and so forth. On the investing front, I mean, you will note again, I've reported this, I mean, to you previously, is that we've obviously had the divestment of Siloam. I mean, with that, we raised about, you know, roughly IDR 10 trillion, and part of that has been used to pay down debt.
Yeah, about IDR 6.2 trillion has been used to pay down some of the bonds, and some of it will be used to pay down some of the syndicated debt loan. And, you know, as part of national amortizations, we pay down some of our debt as well. Now, after that, you will see that we still have IDR 6.8 trillion of cash at the end of nine months 2023. Now, that is obviously more than double, close to triple what we have at the beginning of the year. And this is after a IDR 6 trillion paydown of debt. So definitely, I think from a structural perspective, we are in a very strong position balance sheet-wise. This is again another pro forma view just for you to get a sense in regard to the deleveraging effect that it has from the paydown of the bonds.
As again I presented in the last quarters, we received about IDR 10 trillion from the proceeds from the sale divestment of Siloam. Most of it would have been used, I mean, for the paydown of bonds and syndicated loans and so forth, with some retained for other corporate purposes. Now, if you were to calculate on a pro forma basis, if we were to assume basically all the liability management or reduction events that had happened at the start of FY 2024, on a pro forma basis, you will see that compared to 2022, our debt would have reduced by 62%. Yeah, so again, you know, this is looking at even at the start of 2023, we have IDR 13.1 trillion. This is basically less than half of what we have at the start of the year on a pro forma basis.
If we were to assume basically all debts were to be repaid at the start of FY 2024, yeah, based on the proceeds from the divestment of Siloam. Similarly, on a pro forma basis, interest would have reduced by 61%, close to IDR 845 billion. So this gives you a sense on the year-on-year basis, right? If we have executed basically all the bond retirements, including obviously the 25s and the 26s, as at the start of this year, the interest cost would have reduced by close to 61%. Again, this gives you a sense in terms of what it would mean for 2025 and going forward. Again, on a pro forma basis, as you can see, D/E ratio dropped from 0.92x down to 0.37x, and our interest coverage ratio improved from 3.57x up to 4.35x.
All that has led to, you know, positive rating actions, I mean, from our rating agencies as well. Moody's and Fitch have both upgraded LK's ratings. As you can see, Moody's, we're currently sitting at Caa1, and for Fitch, we're sitting at the B- , and now the majority of our debt are also now denominated in IDR. This is as of nine months 2023. When the liability management is completed, you will see that basically all our debt will be denominated in IDR going forward. The debt maturity profile is also very manageable. I mean, based on our operating cash flow, as you can see, there's no immediate debt wall that we need to worry about, and the net debt has also decreased significantly.
In addition to the business performances that have helped to anchor, I guess, our cash flow and our margins, you can see that the structural improvement with the substantial reduction in debt and the substantial reduction in interest repayment obligations has substantially improved our balance sheet and the corporate profile. Moving on, I'm just going to go through each of our segments to give you a bit of a highlight and overview in regard to the business performances. Real estate for nine months 2024, again, we've been busy. We completed 76 landed projects along with a number of low-rise and high-rise projects. As mentioned, we are on track to achieve our full year marketing sales target, given that as of nine m onths 2024, we've already achieved 80% of our target, hitting IDR 4.25 trillion.
There are still new projects that are being planned, including The Hive, that will launch soon, and the financial performance has been solid with a 2% year-on-year improvement, and again, the handover has been on time. In fact, I'll share later some of the handover we do expect to be ahead of schedule, for example, for our Park Serpong project by the end of the year as well. S o we remain committed, I mean, to basically execute on the strategy that has basically anchored us very well, I mean, for the past few years in regard to innovative affordable housing projects, and I do believe that that will continue to be the right strategy for Lippo Karawaci going forward. The full year target, as mentioned before, is IDR 5.375 trillion. We've now hit 80% of that.
Based on that, we are likely to hit, if not exceed, these IDR 5.375 trillion targets that we have shared with the market earlier. We've continued to have a large land bank, which translates to over 25+ years that we'll basically be able to sustain our growth perspective going forward. In regard to the highlight of the majority of marketing sales, again, no surprise, the bulk of it is still landed housing projects, as I've shared with you earlier, but in terms of both volume and amount, it definitely is still dominated by that segment, and obviously, Lippo Karawaci is still dominating a lot of the sales volume, I mean, followed by the Lippo Cikarang and our other segments. Most of it will still be on mortgage. I think that profile has actually improved. Bank disbursements have improved as well.
As you can see, mortgage portions have improved from 68% to 72%. The bulk of our housing is still the affordable housing segment, as you can see, that is under IDR 1 billion mark, whereby, you know, the portion of that has improved from 64% in nine months of 2023 to 72% in the nine months of 2024. Here are some of the handover highlights. Again, I won't go through in details. We are very excited to be able to hand over keys to our new customers. But XYZ series, I mean, you know about, including the Q series and The Hive. I think we've mentioned about some of these product offerings that we've had in the past. We continue to have the new launches. As you can see from some of these statistics, the new launches have all been very popular.
I want to highlight, for example, the XYZ Livin at Lippo Cikarang, 590 units that we launched, take up of 94%. The XYZ Livin that we launched in Tanjung Bunga, 295 units with take up of 91%. So overall, I mean, our products remain popular, which allows us to book the marketing sales that we have booked thus far. And these are, again, some of the recent launches. The other thing I'm very excited to share with you is that Park Serpong is progressing very, very well. And we do expect handover ahead of schedule. In fact, we do expect, you know, by phase one, there to be handover to start in December 2024. This is four months ahead of what we originally committed in terms of the 18 months reschedule. So very excited.
And then we, I think we would continue to look at ways to be able to improve our construction efficiencies to even speed up our handover further, I mean, for the launches and to allow our customers to be able to get into their new homes earlier. Moving on to healthcare. Healthcare, again, Q3 is a relatively softer quarter compared to 3Q last year. Having said that, we still see that 3Q improved over 2Q performances by 3.6% on the revenue basis and by 4.1% on the EBITDA level. On a nine-month basis, as you can see, revenue improved by 10.8% with underlying EBITDA, again, that is excluding the one-off write-off from Siloam at the start of the year, improved by 8.2%, resulting in an underlying net profit of IDR 978 billion for Siloam, which is a 10.6% improvement.
Now, keep in mind, these numbers are based on Siloam's reported results, I mean, not based on the consolidated results into LK, because otherwise you're not getting a like-for-like assessment on the business performance for Siloam. So on the business performance for Siloam on that basis, as you can see, revenue has improved on a CAGR basis, 13%, I mean, since FY 2019 up to now, EBITDA by 32%. For net profit is obviously much higher going from a -IDR 333 billion to a +IDR 1.247 trillion as of FY 2023. The quarterly performances, as you can see, is also showing from 3Q 2022 up to 3Q 2024, revenue been improving on a CAGR 11.7%, EBITDA 12%, and net profit at 13.3%. A lot of our strategies, as I said before, is to focus on improving the revenue intensity or acuity of our service offering.
So that allows us to have an industry-leading average revenue per occupied bed. As you can see, that continues to improve from 2Q to 3Q. Our average revenue per occupied bed improved by 10%. Average revenue per patient day similarly improved by 4% from 2Q to 3Q. Now, compared to our other competitors, as you can see, our average revenue per occupied bed is substantially higher compared to what other peers are doing. And that has been a deliberate strategy to anchor the growth in Siloam's revenue. EBITDA margin has remained stable. As you can see, drugs and clinical supplies as a percentage of revenue has continued to come down over time. But as of nine m onths 2024, it's at 28.3% versus 28.7% in nine m onths 2023. EBITDA margin has been stable at about 30%. Net profit margin also stable at about 14%.
And the contributions from the payer group, we still find that the majority is still coming from the corporate insurance. Corporate insurance has remained stable in terms of its contributions from about 49.8% in nine months 2023 to about 49.7% in nine months 2024. Again, some of you may know there is pressure from the insurance market in regard to, again, this affects all the hospital healthcare players to be able to manage claims and reduce the amount of claims that they're managing. But despite that pressure, you will see that the private and in terms of OP, corporate insurance continued to grow by 3.7% year-on-year from 3Q 2023 to 3Q 2024. But obviously, the BPJS growth has been higher, yeah, by 9.8% in comparison.
These are some examples in terms of the successful execution of Siloam strategy, whereby we continue to focus on having more advanced procedures and more advanced clinical programs. These are some of the recognitions that Siloam has received over the last three to six months. Again, I won't go through them one by one. The CONGO, and again, as I explained this before, CONGO, whereby we look at cardiology, oncology, neuro, gastro, and ortho. This is kind of the five key focus core group for us. We are seeing that this focus core group has seen good growth, yeah, from nine months 2023 to nine months 2024. For example, you see that the oncology has grew by 9%. Orthopedics, another key area of focus for us, has grown by 20%. So overall, as a core group, CONGO has improved its contributions by about 10.6% compared to last year.
We are excited to say that there's still quite a number of hospitals in development at the moment, but some of it is extension of existing hospitals, including, for example, we are building a brand new oncology center outside of our Lippo Village, Siloam Hospitals. It will be given the brand name of MRCCC as well, same as what we use for Semanggi Hospitals, whereby we do see that there is a significant interest in our ability to be able to develop more advanced oncology service offerings, and we want to be able to build upon that and be able to offer similar services in our other hospitals. B ut Gubeng was also very happy to report, I mean, we should expect Gubeng to be opened somewhere in 2025. Again, we have limited presence in Surabaya. Gubeng would basically represent one of our key expansions into their market.
Some of the other key projects in development, another two projects in Surabaya, Cito and MERR, another project in Semarang, Samarinda. We are also looking at the potential hospital site at Kemang Antasari. All in all, I think there's a lot of exciting development going on in Siloam as well to be able to basically further build upon the growth that it has experienced over the past five years. On the lifestyle, but in regard to Lippo Malls Indonesia, malls' revenue has remained relatively stable, growing at 3% with EBITDA stable at about 1%. There have been various events that we have launched in order to further attract. We do see that as a whole, there is a recovery, especially some of our flagship malls. We are also committed to ongoing improvement on our malls in order to make it a more pleasant experience for our shoppers.
There are a few projects in the works that we would expect completions to happen soon. On to hotel. For Aryaduta, Aryaduta has been improving quite significantly. If you look at it, revenue has improved by 13% with EBITDA improving by 21%. Margin for hotel has improved from 38% to 40%. That is as a result of an 8% improvement in average room rates. Yeah, hotel occupancy has remained largely stable, moving from 66% to 67%. Overall, we do see that most of our markets are recovering very well, especially in Bali. After COVID, tourists are coming back. We are seeing an uptake in a lot of MICE packages from government, from corporates. That has continued to benefit the growth of the Aryaduta brand. We have had several initiatives to, again, promote the business and leisure segments.
For example, in celebration of Batik Day, you know, program to promote staycations and so forth. And those have had a very good uptake and interest from our customers. Looking ahead, we continue to be very positive, upbeat on the potential for real estate segments. Our strategy, as I mentioned, has served us well, I mean, for the last four to five years. And we will want to continue to build upon the success. The distinct products that we've had in [Green] XYZ and Q Series, we were able to replicate that in the outside of Park Serpong, as mentioned in the, you know, in Makassar, in Cikarang. We've been able to launch similar products with a very big uptake and interest from our potential customers. And as a result, we are fully on track to be able to hit our four-year marketing service target for the year.
Siloam's focus on advancing the complexities and focusing on its CONGO has definitely paid dividend, and that has continued to build up the brand recognition of Siloam, and as a result, Siloam wants to now focus more on differentiating its various service offerings. As part of its Next Gen Siloam initiative, Siloam wants to build up alternative adjacent revenue sources, including, for example, by looking into diagnostics and also looking at further differentiating its hospitals into basically the premium archetype versus the value seekers and BPJS archetype in order to have a more dedicated service offerings for our target market. Lifestyle, we continue to see various initiatives, including asset enhancements, which allow our mall frequency to remain stable, and that is anchored by also improvement in the hotel businesses, which we have seen continue to improve year-on-year, and we do believe that that trend will continue.
That is basically a summary of the FY 2024 performances. We are very excited with the progress, especially with the recent restructuring, which a lot of it I have shared with you previously. We look forward to the next phase of our journey. I maybe hand over the time to John. John, if you have any closing remarks to make before we close for Q&A?
Yeah, thank you, Daniel. Good morning to all of you. Thank you for joining our call today. Look, I think Daniel has gone into the details of our three segments and some of the initiatives on the corporate headquarters side of things. Overall, I'm pleased with the outcomes. I think this continues to be a story of just execution and discipline. It's been a difficult macro environment and continues to be so. Daniel mentioned or alluded to some of the challenges, some of the headwinds in the healthcare sector.
In the past, I've mentioned some of the headwinds in the real estate sector as well. That continues. If you take a look at the overall property sales market as a whole in 3Q versus the quarters before, we are seeing an overall slowing down or lowering in the levels of volumes of sales. So the environment continues to be challenging. But having said that, I think we, as a management, continue to just focus on making sure that we execute and continue to find pockets of growth within what is overall, what is generally a more challenging environment. So we'll continue to do that. I think going forward, the theme for us is discipline and just to stay focused on executing across our three business segments. Let's move on to the Q&A, Daniel.
Yeah. Maybe I'll just pick up some questions, yeah. I mean, John, you might just then pick up a few.
Yeah, and I'll do the same. You go ahead.
So what's the long-term plan for Siloam? Now, keep in mind, LK continues to believe that Siloam. LK continues to hold a strategic stake in Siloam. We still hold a 29%. So that is quite significant. But keep in mind that the management structure has also now changed. And we don't anticipate that that will change going forward as well. So basically, everything is business as usual, which means that definitely LK would still be very invested in working with our new shareholders in looking at Siloam strategies. And we'll definitely not be taking a backseat. Yeah, it will continue to be a key component and a key part of our investments.
In regard to, look, we can't really comment on anything related to LMIRT. Yeah, there's a few questions on the LMIRT, whether we plan to invest more and so forth. There's no intentions at this stage for LK to increase its stake in LMIRT. I guess that's what I can say. In regard to, look, other items like LC rights issue and so forth, again, those are comments that we leave for LC to comment. I think as a separate public listed company, we would not want to basically comment on another public listed company's perspective. So perhaps if you can park that question and raise that with LC on a separate level. Yeah, John, if you want to.
I'll add a short remark on the first question that Daniel responded to with regard to what Lippo Karawaci's long-term plans for Siloam are. Look, you know, Lippo Karawaci built its first hospital in 1992. We opened our first hospital in 1992. And over the last 30-odd years, we've grown Siloam into what it is today. And so similarly today, we continue to take a very long-term view of Siloam. And the decision to divest, the decision to divest that we did earlier this year, in no way changes that. And this is, if you see how we view our other investments, have been the same way. So if you take a look at LMIRT, at some point, I think our ownership was down to like 28%-29%. And then it went back up to like 55%. And today we're at about 48%. If you take a look at the Lippo Group's investments more broadly beyond Karawaci, the same thing.
A company like Matahari Department Store, we've been invested in that company for over 30 years. At some point, we were at 80% ownership, then we fell down to about 17%. Today, we're back up to 70% ownership as a group, and so, you know, we look at investments in Indonesia in a very long-term horizon, and so there are moments in time when we feel it's the right thing to do to take some profit to consolidate, and that's what we've done in Siloam. Having said that, we continue to really like the business, both from a financial but also from a social point of view and the impact that we can have on Indonesia, and for healthcare in particular, as all of you would agree, a lot of upside.
Really, I think over the next 10 years, this is really the opportunity for us to continue to grow and perhaps build a business that's very substantial, maybe to a scale of like IDR 1 billion in EBITDA. That's certainly sort of where we're looking at. So we love the business. We love the sector. And we like the fact that the business is a market leader in the segment. And so we intend to continue to be investors and part of the Siloam story for the foreseeable future.
There's a question on government policy having a positive impact on residential property VAT. There's been a lot of discussion around what the new administration will do in the housing space. And some of you may have seen the articles. You know, generally, the high-level thinking around real estate that the new government seems to have is how it can use the real estate sector as one additional growth engine for the Indonesian economy. So you'll see them referring to what the Chinese government has done over the last 30, 40 years.
And obviously, in the last 10 years, a little bit overboard and a lot of leverage in the system. But in the earlier years, the real estate sector played a very productive and meaningful role in growing the economy. And so it seems like the government does have some thinking around doing the same. Having said that, very little detail has been shared up until this point. And so certainly, you know, we welcome the government's interest in the real estate sector. And they're recognizing that the real estate sector does play an important role in the economy. With regard to rumors around, you know, VAT breaks, things like that, I think those are all speculative in nature at this point. We continue to follow the developments around policy, and we'll keep you posted should there be any meaningful developments.
A question on Park Serpong, having done very well and marketing sales, having achieved 79% despite the slowdown in the industry. Look, if you take a look at the top three, four developers, including ours, you're right that on the surface, you don't see a headline. You don't see a slowdown. We've achieved 79% of full-year targets. Other developers, our peers have done the same. But I'd say that I still describe the overall macro environment as challenging because I think two things. If you take a look at how we're able to achieve sales, I would say that we are taking a very disciplined approach on price points.
So these numbers are being achieved on the back of relatively conservative year-on-year price increases. Ultimately, if you take a look at what is the yield on the land that we generate, and that's what ultimately we care about as developers, it's a soft market. To the extent that we try to increase prices too much, volumes drop very fast. Also, whenever you see the moment price points also go beyond IDR 1 billion and IDR 1.5 billion, again, you see volumes drop quite significantly. As I alluded to earlier, we are able to achieve the numbers that we're achieving.
I think similarly, our peers, because we're taking a much more conservative view on margins, we're taking a less aggressive view on price increases and making sure that we really deliver the right product at the right price points and somehow try to engineer the right margins for us as well. So it's a tricky market to navigate. And I'm grateful that we've been able to achieve the numbers that we have. Having said that, it does, if you take a look at things in totality, it does reflect a slowness in the industry. That's the first way that I'd answer your question. The second way that I reconcile our numbers with my view on the market is if you take a look at the three or four or five top developers, you don't really see a slowdown on the surface.
But if you take a look at overall numbers as a whole as an industry, there is that slowdown. Maybe in our next earnings calls, we'll spend a little bit of time talking a little bit about macro numbers and referring to some of the reports that's out there. But you'll see, for example, that 70% of the demand pool in Indonesia are for houses at a price point of under IDR 500 million. And so it's a price point-oriented market. And you'll see that at the lower end of the price point market, and certainly anything below IDR 1.5 billion, volumes have dropped. So we'll spend a little bit of time on that, perhaps in our next earnings call.
Yeah. Other than that, I think we've answered all the questions. I mean, 25 bonds, yes, certainly we intend to pay that off at maturity. That was covered in the deck earlier. Yes, Randi, did we miss anything? I think we covered all the questions.
I think we have covered everything. Any more questions from the audience, please? Okay. If not, maybe do you have some closing remarks by John or by Daniel before I close the session?
Not for me. Appreciate everyone's time and look forward to keeping in touch.
Yep. Anything by Daniel, maybe?
Thank you, Randi. No further comment from me.
Okay, okay. Thank you to Daniel and John. And thank you to the participants attending Lippo Karawaci Nine Months 2024 Earnings Call. We will share the material after the call. See you again in our Full Year 2024 Earnings Call. Have a good day, everyone. Bye-bye.