Source: Humas BNBR | 12 Dec 2015

PT Bakrie & Brothers Tbk (“BNBR” or “Company”) is increasingly confident in prioritizing manufacturing and infrastructure as the mainstay of the business sector in the next five years. This business growth strategy is implemented in line with the government’s commitment to spend the largest development budget for the two sectors.

“Infrastructure development has become a key word for Indonesia’s economic development going forward and BNBR also sees that opportunity. Indeed, the current budget allocation for infrastructure spending is still three percent, but it is expected that in the next few years it can penetrate eight percent of the total gross domestic product, along with the government’s commitment, “said President Director of PT Bakrie & Brothers Tbk, Bobby Gafur Umar during a public exposure in Jakarta, Friday (12/12). “In China and India, the allocation of government spending on infrastructure has reached around 10% of GDP. This has spurred their growth lately, “he said again.

Bobby said the implementation of business strategies in the manufacturing and infrastructure sectors was in line with the spirit of revitalizing the Company’s core business. The last two years, the Company has revitalized the book profile. In the short and medium term, BNBR will continue to boost the growth of the manufacturing sector business from a subsidiary engaged in the automotive component industry run by PT Bakrie Autoparts, the building materials industry led by PT Bakrie Building Industries, as well as pipe products, iron and steel fabrication, construction and EPC contractor which is driven by PT Bakrie Metal Industries.

The three subsidiaries in the manufacturing sector proved to be able to contribute up to 90 percent of the Company’s revenue. As for the medium and long term, BNBR prepared a business growth strategy by spurring the infrastructure sector through the Tanjung Jati A power plant project handled by PT Bakrie Power, the Cimanggis-Cibitung toll road project worked on by PT Cimanggis-Cibitung Tollways, and the gas pipeline project through PT Bakrie Oil and Gas Infrastructure.

Performance Improved

Bobby also explained that in the future, BNBR would focus more attention on three subsidiaries in the manufacturing sector which had actually been initiated and run since decades ago. Currently, the biggest revenue contribution comes from these three subsidiaries.

The Company’s financial performance is also quite good, BNBR Finance Director Eddy Soeparno said, the Company recorded profit for the period attributable to owners of the parent entity, in the third quarter of 2014. The Company’s net profit in the third quarter of 2014 reached Rp.22.57 billion, getting better and more positive compared to net profit in the third quarter of 2014 which recorded a minus Rp.750.28 billion.

Until the third quarter of 2014, the Company’s revenue also increased by 62%, with the main contributors to the increase coming from PT Bakrie Metal Industries. At the same time, the Company’s debt burden also decreased. Debt position in rupiah decreased by Rp.338 billion rupiah or 35 percent, and debt in the form of dollars decreased US $ 26 million, or decreased by 4 percent.