Board of Directors

 

From left to right : Mr. Ferry Suarly, Mr. Yogiawan, Mr. David Lius, Mr. Zhou Chengcai, Mr. Wu Yongcheng, Mr. Hiroya Iwasaki

 

Dear Shareholders,

2016 is an incredible year for the Company. In addition to a more stable rupiah exchange rate, the Indonesian government also emphasizes the state investment budget to infrastructure, especially telecommunications and electricity, where the Company is one of the main suppliers, so it can increasebusiness performance of the Company even farther.

Since the establishment, the Company's policy is to support the government's electricity program as thespearhead of the national electricity development. Until now, PT PLN is the largest market segment andmajor customer of the Company.

The year 2016 started with Company's optimism, in linewith government policy to accelerate the electrical projectsdevelopment which drive business performance of theCompany, so the Company's total sales of cable increasedrapidly by 26% of sales in 2015, become amounted toRp2 trillion. Company's net income also experienced asignificant increase compared to 2015. In addition to theextraordinary figures, the Company also awarded the BestLocal Content Electricity Company and Top 5 ElectricalSupporting Company in the event of IBEA (Indonesia BestElectricity Award).

In the future, the Board of Director sees a tremendousbusiness potential in Indonesia. Although there is aninstability in Europe and the uncertainty in the United States,the Board of Directors believes that Indonesia has one of themost rapid economic growth in Southeast Asia. In addition,the Indonesian government also is trying to attract foreignfunds back into Indonesia in order to accelerate the growthof Indonesia's infrastructure. The things above are believedto be encouraging Company's performance even further atleast for the next five years.

In terms of products, the Company has owned various cablecategories, such as aluminum cable, copper cable, and fiberoptic cable. In terms of production efficiency, most of the rawmaterial that needed were produced by the Company.

The new products in 2016 are transmission cables that focusmore on new technology cable with more capacity.

Total export in 2016 is increased by 124,7% compared to theyear 2015.

From the operational aspect, with a strategy focusing onsales, the Company recorded a gross profit amounted to Rp480 billion or 23.8% of sales compared to 2015 amountedto Rp241,3 billion or 15.1% of sales.

Operating income also recorded a very high growth ofthe sales amounted to Rp299,3 billion or 14.8% of salescompared to 2015 amounted to Rp109,5 billion or 6.9% ofsales.

From the financial aspect, the Company recorded aconsolidated net income after tax amounted to Rp160 billion, a significant increase compared to the year 2015.

Indonesia's economic growth has not yet reached its peak.The World Bank estimates that Indonesia's economic growthwill go up amounted to 5.3% in 2017, compared with 5.02%in 2016. Meanwhile, infrastructure development in the various regions of Indonesia are believed to promote the cable market growth demand of the property market segments.

The Company has prepared a strategy to ensure liquidity andminimize the loss of foreign currency exchange rates. With awell-planned strategy mature and cross-functional teamworkthat are strong and have good coordination betweendepartments in implementing the strategy, the Companybelieves that the Company will be able to take advantage ofthe growth in demand and and face future challenges well.

As a management commitment to quality products, theCompany has implemented a quality management systemby obtaining the ISO 9001 certificate. As a commitment tothe environment and safety, the Company has implementeda Safety Management System, Environmental Pollutionprevention by obtaining the certificate of ISO 14001 andOHSAS 18001 from SGS in 2010.

The Company routinely conducts social responsibilityprograms (CSR) by fostering harmonious relationship,balance and in accordance with the local communities.Company's concern for the welfare of the surroundingcommunity is directed to take the community's potential tobe able to grow and develop with the Company. At the endof 2015 the Company has contributed fiber optic cable to10 SMK (Vocational High School), and open the internshipprogram which the Company can educate and provide acomplete experience to the interns.

The Company upholds the public trust by applying theprinciples of good corporate governance, referred toas TARIF (Transparency, Accountability, Responsibility,Independence, Fairness). The Company believes that these elements will increase the company's value in the long term.The Company sustainably disseminating Business Ethics andWork Ethics to all of the Company's member and applyingthese principles as well as possible.

Representing the entire Board of Directors, we would like toexpress our appreciation and gratitude to the shareholders,the Board of Commissioner, customers, business partnersand employees, for their support and cooperation over theyears. We believe with the relentlessly support, the Companywill be able to improve performance to achieve the goals andplans that have been determined.

 

Jakarta, April 2017