Photo: Pelindo III

JAKARTA (TheInsiderStories) — State-owned port operator PT Pelabuhan Indonesia III, also known Pelindo III, posted Rp912.7 billion (US$94 million) in net profit in the first quarter of 2018, a 37 per cent rise from Rp665 billion in Q1/2017.

The company also recorded a 16.67 per cent rise in revenue to Rp2.31 trillion in Q1/2018 from Rp1.98 trillion in Q1/2017.

The company’s CEO Ari Askhara on Wednesday (09/05) said the growth is supported by various corporate strategies such as business diversification, employee development policy, and the use of technology to boost efficiency.

In 2017, the company posted a record profit of Rp 2.04 trillion, which is an increase of 35 percent compared to 2016. Another positive performance is higher flow of goods and containers, as well as passengers throughout 2017.

“The number of ships and goods has grown by 20 percent [in 2017] compared to the previous year,” said Askhara.

The company plans to spend US$851 million in capital expenditure and sets a target of 20-35 per cent of net profit growth this year. In the next five years, the company will allocate capital expenditure of Rp40-Rp50 trillion.

Askhara on Wednesday (09/05) stated 40 per cent of the capital expenditure will be used for greenfield investment such as docks revitalization as well as expansion and dredging of the port grooves. Pelindo III will also use 40% of its expected capital expenditures to purchase port equipments, he added.

Pelindo III has set a budget of Rp2.4 trillion (US$170 million) to revitalise its aging container terminal. In addition, remaining 20 per cent of capital expenditure will be used to acquire companies to boost corporate income. Pelindo III reviews three acquisition deals, which are 60 per cent shares of PT Adaro Energy’s PT Indonesia Bulk Terminal worth US $ 360 million, 30 per cent of Sriboga, and 90 per cent of PT Alur Pelayaran Barat Surabaya (APBS).

Pelindo III manages 43 ports in seven provinces, namely East Java, Central Java, South Kalimantan, Central Kalimantan, Bali, West Nusa Tenggara and East Nusa Tenggara. It controls 23 subsidiaries and affiliates.

1US$: Rp14,095