AGMS Results: Nusantara Infrastructure’s Net Profit Increases 64% Due to The Right Business Strategy
Telecommunication Tower as a new business unit contributes significantly to the performance growth of Nusantara Infrastructure
12 May 2015
Author: Administrator
Throughout the first quarter of 2015, Nusantara Infrastructure recorded a net profit for the current year amounted to Rp44.45 billion (an increase by 64% compared to the same period of 2014, ie Rp27.1 billion). Income also increased by 25% to Rp130.66 billion (compared to Rp104.78 billion in the first quarter of 2014).
Director of Nusantara Infrastructure Danni Hassan, after the Annual General Meeting of Shareholders (AGMS) in Jakarta, Tuesday (12/5), said, "We are grateful that Nusantara Infrastructure consistently recorded positive performance growth in the midst of the national economic challenges. This is supported by the hard work of all business units as well as the right strategies in organic and in-organic business development by management. We will keep this positive business growth in order to provide optimum benefit to shareholders and stakeholders."
Danni explained that toll road business units still provide a significant contribution to the Company's financial performance. Toll sector provides more than 65% of total consolidated operating incomes and sales. The Company's business strategy by having the latest business unit (telecommunication tower) is the right step. It is proved by providing a significant contribution of 25.61%.
General Manager Corporate Affairs of Nusantara Infrastructure Deden Rochmawaty said,
"We will continue to work optimally to further strengthen the others business sector, so that the contribution of each business will be more balanced."
Business Expansion
Nusantara Infrastructure expanded in a number of business lines. In telecommunications tower, PT Komet Infra Nusantara (KIN), as the latest business unit in the sector of telecommunications tower, managed to earn total income of Rp132.88 billion, and in the first quarter of 2015 amounted to Rp38.76 billion. Nusantara Infrastructure entered the telecommunications business by acquiring a majority stake of PT Tara Cell Intrabuana through its subsidiary PT Telekom Infranusantara, by cooperating with Providence Equity (one of the largest private equity firm in the world and a leading global investor specialized in media and communication). KIN currently has more than 600 telecommunications towers throughout Indonesia, especially in Sumatra and Central Java. KIN’s main business includes leasing of space on towers for wireless operators in Indonesia, based on long-term contracts.
In water supply, PT Sarana Catur Tirta Kelola (SCTK – as a subsidiary of PT Nusantara Infrastructure) increased its production in East Serang of 60 liters/sec to 90 liters/sec, from 2015 until 2018. The improvement rate is 60 liters/sec/year. In Medan, Nusantara Infrastructure has started operations with a capacity of 50 liters/sec.
In toll road sector, Nusantara Infrastructure back won the trust of global investors to develop the toll road business together with Japan Expressway International Co., Ltd. (JEXWAY) and West Nippon Expressway Co., Ltd (W-NEXCO) which is the biggest toll operator in Japan.
Deden said the company will continue to forge alliances with global partners. Cooperation with JEXWAY and W-NEXCO, of course, will give greater chance to the Nusantara Infrastructure to participate in various potential infrastructure projects in Indonesia.
Nusantara Infrastructure is currently in the process of bidding for projects of Semarang-Solo toll road of 72.6 km long, which connects the city of Semarang, Salatiga, and Surakarta, passing through the district of Semarang, Boyolali, and Sukoharjo. The toll road is part of the Trans Java toll road network, which connects the Semarang inner city toll road to the under-constructed Solo-Ngawi toll road.
Result of AGMS
The determination of approval for use of the Company's net profit for the book year ended December 31, 2014, was one of the result of AGMS of
Nusantara Infrastructure. The AGMS also approved the report realization of the Limited Public Offering (LPO) I. The Company also held the EGMS shortly after the AGMS, with the sole agenda of the amendment Association of the Company.
Director of Nusantara Infrastructure Ramdani Basri said that the AGMS of Nusantara Infrastructure specifies that the Company’s entire net profit in 2014 was used as capital.
During 2014, Nusantara Infrastructure’s net profit of Rp152.22 billion (an increase of 88.71% compared to Rp 80.65 billion in 2013). The profit improvement was driven by income increase of up to 21.71% (from Rp425.88 billion in 2013 to Rp518.37 billion in 2014). The company's assets increased 58% to Rp4.07 trillion.
