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Improving Company Equity Structure, BNBR Plans Quasi Reorganization

Improving Company Equity Structure, BNBR Plans Quasi Reorganization

PT Bakrie & Brothers Tbk. (“Company” or “BNBR”) achieved net income of IDR 3.75 trillion throughout 2023. This achievement year on year increased by IDR 132.79 billion or 3.66% compared to the same period in 2022 of IDR 3 .63 trillion. The company also achieved positive EBITDA of IDR 446 billion throughout 2023, an increase of IDR 84 billion or 23.2% compared to the same period in the previous year of IDR 362 billion.

“This achievement is one of the results of the Company’s efforts to continuously refresh its business units with a focus on strengthening the foundation for sustainable business and continually increasing competitiveness,” said President Director & CEO of PT Bakrie & Brothers Tbk., Anindya Novyan Bakrie, after the Annual & Extraordinary General Meeting of Shareholders (GMS), in Jakarta, Friday (21/6/2024).

The increase in net income came from an increase in the income of PT Bakrie Metal Industries (BMI) Group by IDR 49.3 billion and PT Multi Control Nusantara (MKN) by IDR 102.3 billion.


BNBR Finance Director Roy Hendrajanto M. Sakti added that currently the Company’s balance sheet is much slimmer and healthier. Especially with the settlement of derivative obligations to one of the creditors amounting to USD 854.7 million or equivalent to IDR 13.1 trillion.

With this debt settlement, the Company’s debt to equity ratio has become much better and healthier from IDR 12.08 trillion or 10.44x in the previous year, to IDR 589.27 billion or 1.67x in 2023. “Thus, the balance sheet condition “The company has become leaner and healthier, so it is hoped that in the future BNBR can grow faster than before,” said Roy.

Quasi Reorganization Plan

Shareholders at the BNBR Extraordinary General Meeting of Shareholders (EGMS), on Friday (21/6/2024), approved the quasi reorganization plan to be implemented by the Company.

Roy stated that this quasi reorganization was carried out to improve the condition of the Company’s consolidated financial position report so that it can show a better financial position and the Company’s performance without being burdened by past deficits.

Roy detailed that there are five objectives of the quasi reorganization that will be implemented by the Company. First, with this corporate action the Company can start a new start (fresh start) with a financial balance that shows a profit balance without being burdened by past deficits.

Second, improve the Company’s equity structure by eliminating accumulated losses (deficits) by using other equity components such as share premium, differences in transactions with non-controlling parties and a decrease in share capital.

Third, with the condition of the financial balance showing the current value without being burdened by past deficits, it is hoped that the Company will find it easier to obtain funding, if necessary, for business development.

Fourth, the absence of a deficit balance will have a positive impact on shareholders because the Company can distribute dividends in accordance with applicable regulations, including the Limited Liability Company Law (UUPT).

“Fifth, increase investor interest and attraction to own Company shares, so it is hoped that this will also increase the trading liquidity of the Company’s shares,” explained Roy.

Improved Financial Performance

Roy Hendrajanto said, from year to year the Company also consistently shows an improving financial performance trend. This can be seen from the increase in revenue of 25.33% CAGR during the period 2021 to 2023.

“The increase in the Company’s revenue was largely due to the development of the Company’s business through its subsidiary PT VKTR Teknologi Mobilitas Tbk. (VKTR) which operates in the field of electric vehicle sales, PT Bakrie Metal Industries (BMI) and its subsidiaries which operate in the field of corrugated steel fabrication, steel pipe fabrication and steel construction and PT Bakrie Indo-Infrastructure (BIIN) which operates in the construction sector and infrastructure services including telecommunications infrastructure,” said Roy.

Moreover, continued Roy, this positive performance trend can also be seen from the increase in the Company’s operating profit for three consecutive years, respectively amounting to IDR 20.69 billion, IDR 231.91 billion and IDR 348.31 billion, with an average margin of operating profit of 5.51%.

In the period 2021 to 2023, the Company has current year profits attributable to owners of the parent entity of IDR 63.67 billion in 2021, IDR 266.13 billion in 2022 and IDR 237.46 billion in 2023, respectively. “The three-year average of current year profits attributable to the owners of the parent entity is IDR 189.09 billion,” explained Roy.

Furthermore, the Company has good prospects, as evidenced by the positive current year profit in the audited annual consolidated financial statements for 3 (three) consecutive years, respectively amounting to IDR 86.78 billion in 2021, IDR 306.15 billion in in 2022, and IDR 264.46 billion in 2023.

Sustainable Business

The Company’s subsidiary operating in the electric vehicle industry is PT VKTR Teknologi Mobilitas Tbk. (“VKTR”) in early 2024 has succeeded in establishing strategic cooperation by forming a joint venture with the Salim Group entity, PT IMG Sejahtera Langgeng, a subsidiary of the Indomobil Group to boost the adoption of electric vehicles (EV) in Indonesia.

Apart from that, VKTR, through a joint venture company called PT VKTR Sakti Industries (“VKTS”), in Magelang, Central Java, in early 2024 has also started groundbreaking the construction of the first Completely Knock Down (CKD) based commercial electric vehicle facility in Indonesia.

VKTR has also completed the production of 8 units of BYD brand electric buses type D9 high floor which are used by one of the paper companies in Indonesia as a mode of employee pick-up and drop-off transportation.

Moreover, BNBR is also accelerating the development of new renewable energy infrastructure, which is being developed through its subsidiary PT Bakrie Power, namely PT Helio Synar Energi (Helio). After successfully developing Rooftop Solar Power Generation (PLTS) facilities at the PT Braja Mukti Cakra (BMC) factory, Helio will also soon build Rooftop PLTS in factories and other operational facilities within the Bakrie Group with a larger capacity.

“Through Helio, the company is specifically working on renewable energy 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).

In May 2024, Modula launched the BOD3 type 3D construction printing machine, the technology of which is widely used in Europe. In Indonesia, BNBR is a pioneer in using the most advanced technology in the 3D printing construction industry.

“Thank God, in Indonesia BNBR through Modula is a pioneer in the construction industry that uses 3D Construction Printing. We hope that this technology will be able to catch up with the housing backlog in Indonesia, especially in the building and housing construction segment, which is also in line with ESG principles,” said Roy.

Other Business Units

Throughout 2023, the BNBR business unit has succeeded in achieving proud achievements. BNBR’s subsidiary in the steel pipe industry, PT Bakrie Pipe Industries (“BPI”), was able to record revenue of IDR 2.16 trillion, or an increase of 4.9% compared to revenue in the same period last year which was IDR 2.06 trillion. The majority of BPI’s increase in revenue came from orders from the Oil and Gas sector amounting to IDR 82.6 billion, and General Market orders amounting to IDR 17.9 billion.

BIIN recorded sales of IDR 410 billion, or an increase of 33.3% compared to the same period in the previous year of IDR 307 billion. This increase came from PT Multi Control Nusantara (“MKN”) income from a number of projects carried out by the Company.

Meanwhile, the revenue of BNBR’s subsidiary in the automotive components industry, PT Bakrie Autoparts (“BA”) Group, rose 12%, from IDR 934.8 billion in the previous year to IDR 1.05 trillion in 2023. This occurred due to an increase in demand from The main customers of the automotive market, both OEM and OES (Hino, Mitsubishi, Isuzu) in 2023, especially regarding new projects after Covid-19 and the transition of vehicle technology from EURO 2 to EURO 4.


Bakrie & Brothers history bg

The Company’s journey began with the story of a growing small trading business, and in more than 75 years has engaged in investment/divestment business, has reached various achievements and delivered the Company to become one of the leading corporations in Indonesia.