JAKARTA (TheInsiderSTories) — Efficiency pushed PT Pelabuhan Indonesia (Pelindo) III profit in 2017. Based on the company’s audited financial report, the state-owned port operator booked net profit Rp2.04 trillion (US$148.91 million) in net profit last year, a 35 percent increase from 2016.
This increase was driven by revenue growth of 18 percent year on year (YoY) to Rp8.85 trillion, surpassing the operating expenses growth that was reduced by 5 percent in annualy basis.
Pelindo III’s CEO I.G.N. Akshara Dandiputra said the performance was supported by the cultural reformation that highly focuses on the people, process, and technology.
The company’s profit of was not only obtained from the holding company but also the subsidiary companies that recorded big contribution with a total profit of Rp952 billion. It was significantly increased by 44 percent from 2016 that reached Rp662 billion.
Akshara explained, his company managed to improve its profitability last year without increasing port service tariff. He claimed the company imposed the similar tariff for domestic containers since 2015 and international containers since 2009.
Pelindo III plans to spend Rp1 trillion this year for executing several logistical and port projects jointly with three private companies. The port operator also plans to raise US$1 billion from selling global bonds to finance the company’s existing port projects.
Currently, Pelindo III manage 43 ports in seven provinces: East Java, Central Java, South Kalimantan, Central Kalimantan, Bali, West Nusa Tenggara and East Nusa Tenggara, and have 23 subsidiaries and affiliates. Among major ports operated by the company are Tanjung Perak port in Surabaya, East Java, Benoa and Celukan Bawang ports in Bali, Tenau in Kupang, and Banjarmasin in Kalimantan.
Askhara added that this year, the company targets profit growth to reach Rp 2.5 trillion and earn revenues up to Rp 9 trillion. The revenue is derived from port and non port services. To reach the target, Pelindo III has budgeted Rp 12.1 trillion for capital expenditure.