PT Bakrie & Brothers Tbk (“Company” or “BNBR”) recorded positive financial performance in the third quarter of 2023. The company managed to record net income of IDR 3.079 trillion, an increase of 31.77% compared to the same period in the previous year. BNBR also recorded an operating profit of IDR 228.33 billion. This value grew by IDR 140.14 billion (158.92%) on an annual basis or year-on-year (YoY) from operating profit in the same period in the previous year of IDR 88.18 billion.

This achievement of increasing net income was supported by positive records in income from a number of the Company’s business units, including PT Bakrie Metal Industries (BMI) Group amounting to IDR 1.85 trillion, PT VKTR Teknologi Mobilitas Tbk. (VKTR) Group amounting to IDR 890.99 billion and PT Bakrie Indo Infrastructure (BIIN) Group amounting to IDR 328.27 billion.

BNBR President Director & CEO, Anindya N. Bakrie stated that this positive performance was the result of a number of strategic projects carried out by BNBR business units. “In the third quarter of 2023, we are grateful that the company’s policy steps in developing new businesses have resulted in positive performance for the Company. “We are confident and optimistic that the important projects we are developing will have an increasingly encouraging impact,” explained Anindya N Bakrie, in Jakarta, Friday (27/10/2023).

Closing the third quarter of 2023, the Company continues to accelerate the development of strategic projects, including in the transportation electrification sector developed by VKTR. BNBR is also accelerating the expansion of projects in the new and renewable energy sector, such as the construction of Rooftop PLTS and other green energy projects. “The manufacturing sector is still the main contributor, in second place is the automotive sector which includes income from sales of electric buses,” explained Anindya Bakrie.

Positive Performance

BNBR Finance Director Roy Hendrajanto M. Sakti said that the Company’s net income of IDR 3.079 trillion was the result of hard work by business units throughout the third quarter of 2023. In the automotive sector, VKTR’s consolidated revenue increased 6.9%, originating from an increase in revenue at PT Bakrie Autoparts (BA) Group of 14.8%, and sales of electric buses of IDR 99 billion (22 units). In the infrastructure sector, BIIN’s revenue rose 60%, originating from an increase in revenue from a number of projects obtained by PT Multi Control Nusantara (MKN) amounting to IDR 328 billion.

“The largest income comes from the steel pipe manufacturing sector, namely from PT Bakrie Pipe Industries (BPI) amounting to IDR 1.81 trillion, and PT South East Asia Pipe Industries (SEAPI) amounting to IDR 35.07 billion and PT Bakrie Construction (BCons) amounting to IDR 8. 04 billion,” said Roy Hendrajanto M. Sakti.

Accelerating New Business Performance

After officially listing its shares on the Indonesian Stock Exchange (BEI) and launching the expansion of its electric bus and truck assembly factory facilities in Magelang, Central Java, VKTR is also exploring strategic collaboration with a number of large automotive companies in the world for EV Mining Trucks and EV trucks. VKTR is also carrying out the process of collaborating with local dealers to provide sales facilities for its products which will be spread across a number of big cities in Indonesia.

Anindya Bakrie explained that VKTR, through a joint venture company called PT VKTR Sakti Industries (VKTS), in Magelang, Central Java, has 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 one of the paper companies in Indonesia as a mode of transportation for employees to pick up and drop off.

Apart from that, continued Anindya, BNBR is also accelerating the development of new renewable energy infrastructure, which is being developed through a subsidiary of PT Bakrie Power, namely PT Helio Synar Energi (Helio). Recently, Helio has succeeded in developing a Rooftop Solar Power Generation (PLTS) facility at a factory owned by the Company’s business unit, namely PT Braja Mukti Cakra (BMC). Rooftop PLTS with a capacity of 317.7 kWp (kilowatt-peak) is capable of producing electrical energy of up to 434 MWh (megawatt-hour) per year.

“After BMC, Helio will also immediately build Rooftop PLTS in factories and other operational facilities within the Bakrie Group with a larger capacity. We are pioneering and continuing to develop businesses in the new and renewable energy (EBT) infrastructure sector through Helio which is “specially 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). Modula is a new business opener for 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

Throughout the third quarter of 2023, a number of BNBR business units managed to record encouraging achievements. The Company’s business unit in the steel pipe industry, BPI, was able to record revenue of IDR 1.81 trillion, or an increase of 47.7% compared to revenue in the same period last year which was IDR 1.23 trillion. The majority of BPI’s increase in revenue came from orders from the Oil and Gas sector amounting to IDR 529 billion, and General Market orders amounting to IDR 58 billion.

BIIN recorded sales of IDR 328 billion, or an increase of 60% compared to the same period in the previous year of IDR 204 billion. This increase came from MKN’s income from a number of projects carried out by the Company.

Meanwhile, the revenue of its subsidiary in the automotive components industry, PT Bakrie Autoparts, rose 27%, from IDR 689.7 billion in the previous year to IDR 791.5 billion in the third quarter of 2023. This is due to an increase in demand from the main customers of the automotive market, both OEM and OES (Hino, Mitsubishi, Isuzu) in 2023, especially related to new projects after Covid-19 and the transition of vehicle technology from EURO 2 to EURO 4.