PT Bakrie & Brothers Tbk (“Company” or “BNBR”) recorded brilliant performance throughout semester I-2023. The company managed to achieve net income of IDR 1.96 trillion, an increase of 52.01% compared to the same period in the previous year. BNBR also recorded an operating profit of IDR 133.41 billion. This value grew by IDR 105.76 billion (383.03%) on an annual basis or year-on-year (YoY) from operating profit in the same period in the previous year of IDR 27.6 billion.

This increase in net income was supported by positive records in the income of a number of the Company’s business units, including PT Bakrie Metal Industries (BMI) Group amounting to IDR 1.12 trillion, PT VKTR Teknologi Mobilitas Tbk. (VKTR) Group amounting to IDR 642.19 billion, PT Bakrie Indo Infrastructure (BIIN) Group amounting to IDR 202.86 billion and PT Bangun Pillowa Indonesia (BBI) amounting to IDR 1.35 billion.

President Director and CEO of BNBR, Anindya N. Bakrie stated that this achievement was the result of the hard work of all parties. “Closing the first semester of 2023, we are grateful that hard work, efficiency measures and the right choice of new business development have resulted in positive performance for the Company. “In the future, we are optimistic that this achievement will continue in line with the acceleration of important projects that continue to be developed,” explained Anindya N Bakrie, in Jakarta, Friday (28/7/2023),

Until the first semester of 2023, the Company continues to develop strategic projects, including in the transportation electrification sector which is specifically developed by BNBR’s subsidiary, namely PT VKTR Teknologi Mobilitas Tbk. (“VKTR”). Apart from that, BNBR is also preparing expansion for projects in other new and renewable energy sectors. “However, the manufacturing sector is still the main contributor, followed by the automotive sector which includes income from sales of electric buses by VKTR,” explained Anindya Bakrie.

Positive Performance

The Company’s net income of IDR 1.96 trillion is the result of the business units’ hard work throughout semester I-2023. In the automotive sector, consolidated revenue of PT VKTR Teknologi Mobilitas (VKTR) increased 14.5%, originating from an increase in revenue at PT Bakrie Autoparts (BA) Group of 28.7%, and sales of electric buses of IDR 99 billion (22 units). “The main contributors still come from the steel pipe manufacturing sector, namely from PT Bakrie Pipe Industries (BPI) amounting to IDR 1.09 trillion, and PT South East Asia Pipe Industries (SEAPI) amounting to IDR 35.07 billion and PT Bakrie Construction (BCons) amounting to IDR 782 billion. million. “Nevertheless, we are grateful that strategic projects such as VKTR continue to make a positive contribution to the Company’s performance,” said BNBR Finance Director, Roy Hendrajanto M. Sakti.

After officially listing its shares on the Indonesia Stock Exchange (BEI) recently, PT VKTR Teknologi Mobilitas Tbk, a subsidiary of BNBR in the transportation electrification sector, continues to expand its business expansion. Together with Tri Sakti, VKTR began expanding its electric bus and truck assembly factory facilities through a joint venture company called PT VKTR Sakti Industries, in Magelang, Central Java. At this development stage, PT VKTR Sakti Industries also collaborated with a well-known construction company from China, Automotive Engineering Corporation (AE Corp).

At this production facility, VKTR has now started producing a number of Completely Knock-Down (CKD) electric bus units. The BYD brand D9 high floor electric bus, which is currently being produced, will be used in 9 units by PT Riau Andalan Pulp & Paper (RAPP) as a mode of employee pick-up and drop-off transportation. “In this initial stage to produce a bus chassis, VKTR takes around 1-2 weeks. “Meanwhile for the bus body it takes approximately 1-1.5 months,” said Anindya Bakrie who is also the Main Commissioner of VKTR.

Apart from that, continued Anindya, BNBR also has long experience in the energy infrastructure development business, which was developed through its subsidiary PT Bakrie Power. “We are pioneering and continuing to develop business in the new and renewable energy (EBT) infrastructure sector through PT Helio Synar which is specifically working on EBT power generation projects that are environmentally friendly and become a future trend,” said Anin.

BNBR is also pioneering a new business through PT Modula Sustainability Indonesia (“Modula”), which invests in the 3-dimensional printing (3DCP) construction technology subsector, in a joint venture with COBOD International from Denmark which is owned by world leading companies such as GE (USA), Cemex (Netherland ), Holcim (Switzerland) and Peri (Germany). Modula is a new business opener for PT BBI’s subsidiary which has been involved in the building materials industry and provides alternatives in building construction with fast, advanced and environmentally friendly technology.

Business Unit Achievements

A number of BNBR business units succeeded in making encouraging achievements throughout semester I-2023. PT Bakrie Pipe Industries (BPI), for example, was able to record revenue of IDR 1.09 trillion, or an increase of 100% compared to revenue in the same period last year which was IDR 547.16 billion. The majority of BPI’s revenue increase came from oil and gas sector orders amounting to IDR 515 billion, an increase of IDR 315 billion compared to the same period in the previous year of IDR 199.6 billion. Meanwhile, the electricity and General Market sectors contributed revenue of IDR 578.8 billion, an increase of IDR 231 billion from IDR 147.6 billion in the same period the previous year.

Apart from that, PT South East Asia Pipe Industries (SEAPI)’s revenue increased by 30.2%, mainly coming from Tridaya Esa Pakarti amounting to IDR 19.5 billion, from the oil and gas sector IDR 7.7 billion, from Elnusa Fabrication Construction IDR 5.5 billion, and from Jaya Semanggi Engineering amounting to IDR 1.8 billion.

PT Bakrie Autoparts’ revenue rose 28.7%, from IDR 422 billion in the previous year to IDR 543.2 billion in the first semester of 2023. This happened mainly due to an increase in sales volume. This increase came from wholesale ATPM, especially Mitsubishi and Hino, which rose 36% to 11.9 Kton, while the spare parts market fell 3% (530 tons).