BNBR Soon ‘Upgrade’ to Sustainable Business
In the midst of efforts to deal with the impact of the pandemic and restrictions on activities that have paralyzed many business sectors in this country, PT Bakrie & Brothers Tbk (BNBR) is actively pursuing internal efficiency, and is even now directing all company resources to start treading new, more promising business fields. , namely in the sustainable business sector and digital technology-based business. This was revealed by the President Director of BNBR Anindya Bakrie, through a press release on Sunday (01/08).
“So far, one of the important pillars in our portfolio is the manufacturing industry. For almost 80 years, or as long as our business group was established, this sector has become a mainstay,” said the man who is familiarly called Anin. Recently, BNBR has been working on infrastructure projects which have also contributed to the company’s growth, but technological advances and rapidly changing market conditions have forced Bakrie & Brothers to prepare for a new maneuver.
“Now is the time for us to take another step forward. The main target of all business actors in the world is now following what is stated in the Sustainable Development Goals (SDGs). We also see how digital technology has become the mainstream of business around the world. Therefore, BNBR is also committed to developing the sustainable energy and digital business sector as part of a future business strategy,” Anindya explained. “So, in other words, we want to ‘grade up’ doing businesses that are sustainable and environmentally friendly, based on mastery of appropriate technology.”
Anindya also said that the new focus was not to abandon existing businesses. Industrialization will remain an important pillar for the company, going forward. “We will gradually revitalize every business unit in the manufacturing sector, adjusted to the challenges and opportunities that exist, towards Industry 4.0. It will take time and a long process, but we are optimistic about the result,” said Anindya. “So, we are reforming the existing business, while starting to ‘pivoting’ our new businesses.”
BNBR’s New Businesses
As is known, Bakrie & Brothers is currently pioneering several business sectors that are classified as new sustainable businesses. Among them are Bakrie Autoparts, a BNBR business unit engaged in automotive components, which is supplying electric bus units to the DKI Jakarta Provincial Government through PT Transjakarta. As many as 30 buses will now be used by Transjakarta. Going forward, BNBR has also committed to providing the next additional unit, in order to meet DKI Jakarta’s target of 100 electric buses this year.
In the new and renewable energy industry sector, Bakrie & Brothers through its subsidiary PT Bakrie Power recently agreed to cooperate with PT PLN (Persero) in the project for the procurement and installation of a Hybrid Solar Power Plant (PLTS) in Parak Village, Selayar, South Sulawesi. Currently, there are hundreds of diesel-powered power plants that are now operated by PLN, so this has great potential to be converted into EBT plants, as was done in PLTS Hybrid Selayar.
BNBR through PT Multi Control Nusantara (MKN) which focuses on the information and communication technology/ICT industry and the provision of IT infrastructure support services, is now also starting to take part as a provider of IoT (Internet of Things) services for the mining, manufacturing and utilities industry. Following the upward trend in the industrial sector, PT MKN’s revenue from providing ICT services in the middle of 2021 increased by more than 182% compared to the same time last year. This shows the huge potential of this business in the future.
Improved Financial Performance
On the same occasion, Anindya Bakrie also explained that the choice of business sector that she has been engaged in so far has proven to be able to bring BNBR through various crises and challenges. “Alhamdulillah, until now we have been able to maintain the company’s growth and get through the ups and downs of the business world, armed with the resilience of our business sectors,” he said.
Anindya admitted that this prolonged pandemic had a significant impact on the company’s overall performance. However, gradually the company was able to reverse this negative performance. “It can be seen from the mid-2021 financial report that we have just published, the efficiency efforts in various sectors that we have carried out throughout the year have produced encouraging results,” he said. “In running the company’s efficiency, we take several ways including saving measures, reducing costs, to rescheduling the payment of obligations.” One of the indicators of improvement seen is the value of operating losses, which are better than the value in 2020. In the middle of 2021, BNBR recorded a net loss of Rp.43 billion. This figure is much better than the same period last year, which recorded a net loss of more than Rp. 121 billion. Meanwhile, the company’s revenue for the half year in 2021 is at Rp. 1.038 trillion, down about 21% compared to last year. In line with that, COGS also decreased proportionally by 21%. In addition to controlling COGS, BNBR also managed to achieve 27% efficiency in operating expenses compared to the same period last year, which is a positive indication of the efficiency efforts undertaken by Bakrie & Brothers.