PT Dafam Property Indonesia Tbk (DAFM)

23 June 2026

1. Company Overview Dafam Property Indonesia Tbk is a publicly listed real estate developer domiciled in Indonesia, with its head office located in Semarang, Java (Central Java). The business was established in 2001 and the company’s stock was listed in the Indonesian Stock Exchange (IDX) in 2019 through an initial public offering (IPO) transaction. The business develops mainly the residential property segment of the market and manages hotels through its subsidiaries. DAFM’s principal business activities include land development, residential and commercial housing developments, shopping center developments and hotel management under the brand name Dafam. The company has developed and operated many hotels in Indonesia for leisure and business travelers. The business also faced challenges in its operational environment after it went public due to the COVID-19 pandemic in 2020 and 2021 which resulted in lower occupancy rates at its hotels and slower sales of residential properties. DAFM is still reporting net operating losses due to the high cost of capital, the large amount of debt taken on during the pre-IPO expansion phase and significant competitive pressure in the property development industry even as the Indonesian economy has begun to recover after the pandemic. As of December 31, 2025, DAFM has a share capital of Rp 189,990,000,000 and approximately 1,899,852,850 issued and outstanding shares with a par value of Rp 100 each. 2. Financial Statement Analysis This section analyzes DAFM’s consolidated financial statements from 2020 to 2025. All figures are presented in Indonesian Rupiah (Rp) billions unless stated otherwise. 2.1 Balance Sheet Trends The total assets of DAFM have been gradually decreasing in recent years. Total Assets decreased by 26.4% from Rp 308.40 billion in 2020 to Rp 226.98 billion in 2025. This decrease was due to several reasons like decreasing fixed asset value, selling property held for investment and continued reporting of net losses, all of these negatively affected the shareholder equity. Its inventories also declined to Rp 32.66 billion from Rp 82.27 billion within the same period, mostly comprised of land and projects under development. This means fewer new project launches and less new land bought during this period. Total liabilities were slightly lower but still very high relative to total assets. Total liabilities dropped from Rp 226.53 billion at December 31, 2020 to Rp 216.32 billion at December 31, 2025. However, DAFM’s equity position decreased significantly. The company recorded six consecutive years of net losses, leading to total equity dropping from Rp 81.87 billion at December 31, 2020 to just Rp 10.66 billion as of December 31, 2025; total accumulated losses amounted to Rp 80.75 billion at the end of 2025. The erosion of equity has a direct and compounding effect on DAFM’s cost structure. As equity shrinks, the company’s entire capital base becomes increasingly funded by expensive bank debt. According to the Balance Sheet, total equity fell from Rp 82.00 billion in 2020 to Rp 11.31 billion in 2025, while total bank debt (current and long-term portions combined) declined more moderately from Rp 178.04 billion to Rp 103.65 billion over the same period. As a result, equity’s share of total capital (bank debt + equity) collapsed from 30.5% in 2020 to just 10.8% in 2025, with debt accounting for the remaining 89.2%. This structural shift means that a much larger proportion of the company’s asset base must be financed at the cost of debt rather than equity, directly raising the minimum return DAFM must earn before any value is created for shareholders. The interest expense line reflects this burden: financing costs reached Rp 15.47 billion in 2024 before declining to Rp 11.66 billion in 2025 only because significant debt principal was repaid, not because the interest rate environment improved. The Debt-to-Equity ratio of 16.2x in 2025 (up from 2.8x in 2020) indicates that any rollover or new borrowing carries substantially higher lender risk and could attract higher credit spreads. In summary, every rupiah of equity eroded by cumulative net losses removes a lower-cost capital buffer and replaces it with higher-cost debt obligations, making the financial break-even threshold progressively harder to reach. TABLE 1 – BALANCE SHEET SUMMARY (RP BILLION) 2.2 Income Statement Trends Revenue was down every year. Revenue declined from Rp 89.08 billion in 2020 to Rp 60.40 billion in 2025. This means that the total revenue decline is 32.2%. Fewer properties were handed over to customers. Increased competition and fewer hotels being built led to a reduction in hotel room revenue as well. Total revenue cost was down in spent amount but it was still pretty high as a percentage of revenue for each of the years. The gross margin percentage decreased from 55.4% in 2020 to roughly 49.8% in 2025. The company had some gross profit but the larger expense attributable to operations kept the net position in a net loss position for all 6 years. These higher costs were primarily related to general and administrative expenses and interest expenses. 2025 results are better than previous years. Pre-tax loss further improved significantly to Rp 6.73 billion in 2025 from Rp 18.89 billion in 2024 — better than any year from 2019 to 2023, which showed a good trend for the company. The company has made significant progress in reducing bank debt levels, which was reflected in an overall lower amount of financing costs. The overall decrease in financing costs was from Rp 15.47 billion in 2024 to Rp 11.66 billion in 2025. 2025 other income is reported at Rp 6.53 billion compared to expense of Rp 3.96 billion in the prior year. The 2025 other income helped improve the results over the prior year, and likely is related to gains on the settlement or increase in the value of property. TABLE 2 – INCOME STATEMENT SUMMARY (RP BILLION) 2.3 Cash Flow Analysis Cash generated from operations is much higher than income statement earnings. Meanwhile, the company’s operating cash flow was negative Rp 15.53 billion in 2020 and negative Rp 1.77 billion in 2021, but it turned positive in 2022 and reached Rp 32.54 billion in 2025. This was a big turnaround, driven by an increase in cash collected from customers (Rp 61.27 billion) and better management of payments to vendors and for operations. The business reports accounting losses, but has positive operating cash flow, partly due to the impact of large, non-cash financing costs and the impact of depreciation on the income statement. The cash outlays incurred for investing activities were not significant and the majority of the cash outlays related to minor investments in fixed assets. Cash outflows related to financing activities resulted from the repayment of bank loans each year with no new shares being issued by the company since its 2019 initial public offering and no dividend payments being made. Cash balance remains low, with cash levels of between Rp 3.28 billion and Rp 7.25 billion, which provides minimal safety against current liabilities that exceed Rp 80 billion through 2024 and 2025. In this situation, DAFM was highly reliant on continued strong collection of cash inflows and cannot afford any disruption to its cash generation. Any disruption to its cash flow will cause it to break down. TABLE 3 – CASH FLOW SUMMARY (RP BILLION) 2.4 Financial Ratio Analysis 2.4.1 Liquidity Ratios The current ratio deteriorated significantly from 1.38x in 2020 to 0.49x in 2025, well below the conventional benchmark of 1.0x. This indicates the company’s current liabilities, dominated by accrued expenses, bank loan current portions, and sales advances, substantially exceed its liquid assets. The sharp drop in 2024 to 2025 was driven by reclassification of larger bank loan tranches to current maturities and a surge in accrued expenses. This liquidity stress is a primary credit risk concern. TABLE 4 – LIQUIDITY RATIOS 2.4.2 Profitability Ratios Gross Margin remained stable between 49% and 55% which indicates the company has good control of direct costs related to its hotel and property services; however, there has been no positive Net margin over the last five years after deducting operating costs (general, selling, and financing), with Net Margin ranging from -16.1% to -29.5% over those years. Return on assets (ROA) and Return on Equity (ROE) have both been negative and have continued to decline due to the large number of accumulated losses on the company’s income statement, with the 2025 Net Margin being improved to -15.2% for the year. TABLE 5 – PROFITABILITY RATIOS 2.4.3 Solency & Coverage Ratios The debt-to-equity ratio has increased significantly over the same period from 2.77x to 20.29x, indicating that the corporation is almost totally insolvent in terms of equity and is more indicative of the corporation’s use of debt versus an increase in borrowing from outside sources. The corporation’s debt-to-assets ratio is extremely high at approximately 95.3%, an increase from 73.5% in 2020, resulting in there being almost no equity in this corporation. The interest coverage ratio was also negative for several years with no operating income available to cover interest costs. In 2025, the interest coverage ratio deteriorated from -9.38x to -14.65x, reflecting continued difficulty in generating sufficient operating income to cover financing costs. TABLE 6 – SOLVENCY RATIOS 2.5 Capital Structure Analysis Dafam has a capital structure that is heavily composed of debt. Long-term loan debt (from banks) primarily consists of financing for hotel construction and land purchases prior to their IPO. As of December 31, 2025, Dafam’s total bank loans (both short-term and long-term) will have decreased from Rp 178.04 billion (2020) to approximately Rp 103.65 billion. Furthermore, it has been paying down its bank loans using the cash generated through operating activities and has not taken on any additional bank loan debt between 2020 and 2025. Shareholder equity suffered a large loss and the size of the share capital account was Rp 189.99 billion; however, there are significant offsets to equity with negative additional paid-in capital (-Rp 85.24 billion), negative non-controlling interest (-Rp 11.01 billion) and accumulated deficit (-Rp 80.75 billion by 2025). Therefore, the total equity for the parent company’s shareholders will be approximately Rp 12.98 billion. Because equity is positive but extremely thin relative to total debt, a conventional WACC calculation must be interpreted with caution; however, it can still be estimated as follows. WACC Estimation.  Using 2025 Balance Sheet data, total bank debt (current Rp 15.78 bn + long-term Rp 87.87 bn) equals Rp 103.65 billion, and total equity is Rp 11.31 billion, giving a combined capital base of approximately Rp 114.96 billion. Debt therefore comprises 90.2% of capital and equity 9.8%. The pre-tax cost of debt is estimated at approximately 8.0% per annum, based on 2025 financing costs of Rp 11.66 billion divided by average outstanding bank debt; applying the effective tax rate (which is near zero given ongoing losses and deferred tax assets), the after-tax cost of debt remains approximately 8.0%. For the cost of equity, given the company’s near-insolvent position, negative ROE of -86.2%, and sustained losses, a required equity return of 20–25% would be a reasonable minimum to reflect the distressed risk premium demanded by equity holders. Using a mid-point cost of equity of 22.5%, the WACC is approximately: WACC = (90.2% × 8.0%) + (9.8% × 22.5%) = 7.22% + 2.21% = 9.4%. This figure, however, understates the true economic cost because equity at Rp 11.31 billion is so thin that any incremental loss could eliminate it entirely, and lenders may reprice credit facilities upward. In practice, the all-in cost of financing for DAFM is closer to 10–12% when refinancing risk is included. This reinforces why debt reduction remains the single most powerful lever for reducing the company’s cost structure. The current capital structure poses an extremely high going-concern risk for Dafam. If the company continues to incur losses at its current rate, the equity of the company could be fully extinguished within 1–2 years. Dafam’s management is actively looking for ways to restructure its bank loans and improve the operations of the company to create a more stable balance sheet. There has been a reduction in net loss from Rp 18.69 billion in 2024 to Rp 9.19 billion in 2025; this is encouraging news for the ongoing operations of the company; however, without a new capital infusion or consistent profitability, it will be difficult for management to overcome the current insolvency position of the company. TABLE 7 – CAPITAL STRUCTURE (RP BILLION) 3. Industry & Sector Analysis Dafam operates in Indonesia’s property and real estate sector, which includes housing, commercial buildings, and hotels. The sector contributes about 2.8% of Indonesia’s GDP. It connects to over 170 other industries, such as construction materials, finance, and furniture. Sector performance is sensitive to interest rates, consumer confidence, government rules (housing finance, land laws), and economic growth. 3.1 Porter’s Five Forces Threat of New Entrants [Moderate] There are average barriers to entry in the Indonesian real estate market. Purchasing land and constructing require a considerable disposable income. Obtaining permissions (building, environmental, land deed) requires time. However, there are many players that operate in a disjointed manner. In Central Java (Semarang region), Dafam is the controlling organisation. Local developers have a low barrier to entry based on obtaining better real estate deals. Developers with well-established business relationships hold more purchasing power. Although barriers are sizeable, there are ways for new business entities to enter this market. Entry barriers for new players are average. Bargaining Power of Suppliers [Low to Moderate] Building contractors and suppliers of building materials (e.g., cement, rebar, bricks) along with hotel fixtures (i.e., kitchen towels, bedding, dishes) form the primary sources of supply for Dafam. The overall construction industry in Indonesia is heavily saturated with many competing mid-size architecture contractors available. Since there are numerous contractors competing for similar clients, key suppliers of building materials have low power. However, volatile pricing of building materials (such as cement, rebar) creates considerably higher unpredictability in overall construction costs. Therefore, Dafam does not depend on purchasing food, linens, or other fixtures from suppliers. Dafam can quickly replace any vendor supplying fixtures. In general, supplier bargaining power is low to medium. From a financial statement perspective, supplier-related expenditure can be tracked across both the Cash Flow Statement and the Balance Sheet. The Cash Flow Statement shows that cash paid to suppliers was Rp 27.52 billion in 2020, declining to Rp 11.15 billion in 2025 — a 59.5% reduction over six years, broadly consistent with falling revenues and the reduction in new construction activity. On the Balance Sheet, Trade Payables (amounts owed to suppliers and not yet paid) ranged between Rp 0.89 billion and Rp 2.01 billion across the 2020–2025 period, remaining relatively small in comparison to total liabilities. This low trade payables balance indicates that DAFM settles its supplier invoices relatively promptly and does not rely heavily on extended supplier credit — a sign of moderate supplier power, since suppliers are not under pressure to offer extended payment terms. Accrued Expenses on the Balance Sheet, which grew from Rp 10.57 billion (2020) to Rp 47.24 billion (2025), reflect a different category: unpaid obligations to service providers and staff rather than material suppliers per se, and the sharp increase signals mounting operational payment pressure rather than a change in supplier bargaining dynamics. Taken together, the low and stable trade payables confirm that direct material suppliers currently hold limited leverage over DAFM, consistent with the competitive landscape described above. Bargaining Power of Buyers [High] In Indonesia, property buyers tend to be very sensitive to price. For this reason, buyers can compare property prices/projects easily via various digital property sites such as Rumah123 and Lamudi. For hotels, customers can also use OTAs (online travel agencies) like Traveloka and Booking.com to compare the prices of hotel rooms. As a result, buyers have a lot of bargaining power. Threat of Substitutes [Moderate] For example, some people choose to rent a house or an apartment instead of buying a property. Also, many young people living in urban areas prefer to rent than to buy a home. Therefore they do not feel as much pressure to make a decision about buying property. Similarly, in the hotel industry, people can find substitute accommodations such as guest houses, serviced apartments or an Airbnb-type arrangement. The increasing number of short-term rental options provided by private individuals, in particular, creates additional risk for Dafam’s hotels. Rivalry Among Existing Competitors [High] There are many players in the Indonesian property market, and there is a high level of competition between existing players. DAFM competes with well-established national property developers, including Pakuwon Jati, BSD, Ciputra Development, and Summarecon Agung. DAFM’s hotel segment competes against large international hotel companies such as Swiss-Belhotel and Favehotel. 3.2 PESTLE Analysis Political [Moderate] Government support has helped make the Indonesian property market successful. For example, the government has introduced many affordable housing programs like Program Sejuta Rumah (Million Homes) and the creation of KPR FLPP (subsidized housing loans). Even with lots of government support the property market continues to suffer from issues that make doing business in the market difficult, including unclear property land laws and a changing landscape of local governments resulting in slow approvals for permits, and frequent policy changes due to national elections. An example of the issues above was seen with the presidential election in 2024 and the rise of President Prabowo Subianto as president. President Prabowo Subianto has pledged to invest in infrastructure; his commitment is expected to lead to an increase in demand for property within cities (where Dafam operates), benefiting both sectors. Economic [Moderate to Positive] GDP growth in Indonesia post-COVID-19 has been strong, approximately 5.0% to 5.1% each year; however, interest rates remain high. Bank Indonesia’s key rate was projected to be between 6.00% to 6.25% for 2024 and 2025, making it more expensive for buyers to finance the purchase of homes through mortgages. Inflation is estimated to be less than 3.00% for 2024. With rising interest expenses on approximately Rp 103.65 billion of bank debt, this will have a negative effect on Dafam’s profit margins. The recovery of tourism has started to have a positive effect on hotel occupancy rates, which will also benefit the hotel industry overall. Social [Positive] Middle class growth, urbanization, a young population, and increased demand for middle-class housing all support the sector. Home ownership is still culturally important, however affordability is a concern for first-time buyers. There is very high demand for smaller units and lower priced housing in lower density cities/villages, and post-COVID-19, people are placing greater importance on having a larger home with outdoor spaces and a space to work from. Dafam’s township developments can address some of these needs. Technological [Moderate] The introduction of digital technologies has changed the way people view and purchase real estate in Indonesia, with online real estate portals (e.g., Rumah123, Lamudi) and virtual tours becoming part of the standard sale process. PropTech startups have created new competitors as well as another sales channel. With hotel bookings, the increased reliance on OTAs (Online Travel Agents) has higher distribution costs and has increased the reach to customers. The introduction of smart home features and green building designs are becoming important features to middle/high-income buyers. Dafam has been slow to embrace technology but risks falling behind — or can take advantage of the opportunities presented by keeping pace and increasing its efforts. Legal [Moderate] In Indonesia, there are many important factors that impact the development of real estate. These include land procurement law (UU No. 2/2012), the Cipta Kerja (2020), and the condominium law. The Cipta Kerja (omnibus) law is particularly helpful to developers as it makes it easier for them to obtain the necessary permits to develop property. However, developers face challenges with land disputes in the areas where they develop. Environmental regulations (‘AMDAL’) add additional complexities. Environmental [Increasing Risk] Environmental risk is becoming a major issue for property companies. Most new property developments in Indonesia must now complete an AMDAL before they can be approved by local authorities. In addition, the risks associated with climate change (e.g., flooding) can adversely impact property in low-lying coastal areas of Java. More and more businesses are requiring sustainable buildings to qualify as ‘Greenship Certified’ properties; therefore, there are limited opportunities for sustainability and/or eco-friendly building products in Dafam’s projects. This results in both compliance risks and missed opportunities in the marketplace. 4. Financial Projection 2026: Pro Forma Statements This section shows projected financial statements for Dafam for the year ending December 31, 2026. Projections are based on 2020–2025 trends, recent management statements, industry outlook, and the key assumptions below. 4.1 Key Assumptions 4.2 Pro Forma Income Statements (FY 2026) 4.3 Pro Forma Balance Sheet (December 31, 2026) Note: Projected equity of Rp 2.77 billion reflects 2025 equity of Rp 10.66 billion less the projected 2026 net loss of Rp 7.89 billion. Inventory reduction reflects properties expected to be completed and handed over to buyers during 2026. This remains our base-case projection and is subject to material uncertainty. 4.4 Pro Forma Cash Flow Statement (FY 2026) 4.5 Outlook and Prospects The cautious but positive outlook for the company in 2026 is very promising, because of the amount of debt that will be paid off in 2025 and subsequently 2026 due to lower costs of financing. If they continue to pay off their loans as they have been doing over the last two years, then they could potentially have all of their bank debt eliminated by the end of 2026 and only have interest payments which are below one billion per year. If that happens, it places them near a break-even point by the end of 2027 and the beginning of 2028. In regard to generating revenues, Dafam’s remaining land inventory is valued between thirty-two and thirty-five billion (Rp 32–35 bn) as of 2025, down from eighty-two billion (Rp 82 bn) in 2020. Although this poses both a challenge and an opportunity for the company, it also provides an opportunity for improved cash flow if they can sell their remaining land faster with improved marketing and better pricing strategies. In addition, hotel occupancy rates beginning to recover will serve to stabilize their revenues, coupled with estimated domestic tourism growth rates of approximately 8–10% annually. Key risks to forecasts: Liquidity worsens if operating cash flow is weaker than expected. Lenders pressure loan agreements. No new projects due to lack of capital, limiting future revenue. Economic slowdown reduces property demand. The likelihood of Dafam breaking even prior to 2028 is moderate (40–50%) and is contingent upon a continued reduction in debt levels and a stable economy. A more optimistic outcome would be for Dafam to issue new shares through either a rights offering or a partnership to create a significant amount of additional capital, which would allow for faster recovery. 5. Conclusion PT Dafam Property Indonesia Tbk has a highly complicated financial profile, the result of having a real, well-defined business as well as a well-defined market position. The company has a significant amount of old debt from pre-IPO expansion, and has therefore historically been unprofitable for the last six years (2020 through 2025). In addition to having an unsustainable long-term financial structure (debt accounting for over 95% of total capital), the company has reported continuous net losses and declining revenues, and is close to erasure of its entire equity through cumulative net losses over the last six years. However, there are several encouraging signs. For example, in 2025 the company generated an estimated operating cash flow of over Rp 32.54 billion, indicating it is generating significant cash from its core business operations. In addition, the company has experienced a steady decrease in the overall level of its debt. Positive trends exist for PT Dafam Property Indonesia Tbk since losses for the year ending December 31, 2025 were significantly lower than the previous year (Rp 9.19 billion vs. Rp 18.69 billion). In addition, the overall sector outlook is also very good due to a significant portion of the population of Indonesia being in the growing middle class (increasing national income), an increase in the number of people living in urban areas (urbanization), and reshaping of industry demand following a recovery from COVID-19. More specifically, the analysis of the competitive environment using Porter’s Five Forces and PESTLE indicates that the market is relatively attractive, and that PT Dafam Property Indonesia Tbk will have to be highly competitive in order to continue to be successful. The relative dimensions of PT Dafam’s size, brand strength, and financial flexibility will determine whether or not it succeeds. Although it holds a relative local competitive advantage by operating in Central Java, the company has limited its overall marketplace reach as a result. Management priorities should be: Sell land inventory faster to raise cash and cut holding costs. Keep reducing debt aggressively. Look for partnerships or new equity to fix the balance sheet. Invest selectively in digital tools to improve sales and hotel bookings. 2026 forecast: net loss improves slightly to about Rp 7.89 billion. Revenue rises slowly to Rp 62.8 billion. The path to break-even is clear; it needs steady operational discipline and stable economic conditions. Investors and stakeholders should watch debt coverage ratios, cash conversion, and new project launches — these are key signs of recovery. JOIN NOW: https://gabung.binus.ac.id/admission-calendar/