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Property developer Intiland Development has set aside Rp 1.8 trillion ($187 million) for capital expenditure, the bulk of which will be used to finance the South Quarter development in South Jakarta.

South Quarter is a 7.1-hectare mixed-use property complex that consists of office towers, apartments and supporting retail facilities.

Around 60 percent of the capex will come from internal cash, Intiland’s corporate secretary Theresia Rustandi said in Jakarta on Friday. The remainder will be from bank loans.

“We still have room to take out bank loans,” she said, adding that the company’s debt-to-equity ratio is low.

Intiland expects the South Quarter property project to boost the company’s recurring income to 30 percent from around 12 percent now.

Intiland also plans to expand its existing industrial park in East Java.

Theresia said Intiland is eying 400 to 650 hectares of land in East Java to increase the size of its Surabaya industrial park.

The developer recorded a 29 percent decline in net income in 2012 due to the rising costs of goods sold.

Net income decreased to Rp 188 billion, from Rp 263 billion, despite a jump in revenue, which rose 11 percent to Rp 939 billion last year due to strong sales in new apartments, industrial parks and landed housing projects.

Archied Notopradono, a director at Intiland, said the cost of goods sold rose 33 percent to Rp 578 billion.

Mixed-use property is now blossoming in Jakarta as people seek to reduce the pain of dealing with traffic jams. More developers are providing residential condominiums that are integrated with offices, retail facilities and even entertainment.

Agung Podomoro, one of the country’s biggest property developers, owns a mixed-use project in North Jakarta called the Green Bay Pluit superblock. This complex has 12 apartment towers built on 12 hectares of land, with a 3-hectare botanical garden surrounding the complex.

Agung announced in a statement last year that it booked Rp 5.58 trillion in pre-sales — sales of projects that have not been finished — by the end of November.