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CEO Message
CEO Message

Dear Shareholder,

By 2017 the Indonesian economy has grown quite well which marked by economic growth of 5.07%, the highest economic growth since 2014, supported by improvement in government infrastructure, private investment role, and supported by the influx of high foreign capital inflows, and relatively stable rupiah exchange rate. It is also marked by 3.61% inflation maintained, which provides a conducive atmosphere for the strengthening of the domestic economic recovery momentum.

In line with the increase of world crude oil price which recorded the average price of WTI oil in 2017 amounted to USD 50.74, the increase of Indonesian oil price became one of the sectors that contributed to economic growth, which according to Ministry of Energy and Mineral Resources (ESDM) average price of Indonesian oil, Indonesian crude oil price throughout 2017 reached USD 51.19 per barrel, up 27% compared to 2016 which reached USD 40.13 per barrel. 

In 2017, the company generally showed improved performance by optimizing the operation of Merak plant with the completion of catalyst turnover for MEG 2 plant in November 2017, which can increase the efficiency of ethylene raw material usage and to produce more competitive products so as to increase the market value for glycol ethylene products and their derivatives.

In addition, in 2017, the Company booked net sales increase of 27% from USD. 279.95 million in 2016 to USD 355.10 million in 2017. The increase in net sales was due to increased sales in all segments of both sales of polyester and glycol ethylene products and their derivatives.

Based on type of product sales in 2017 are as follows: polyester: USD 103.31 million, chemical: USD 215.24 million and nylon yarn: USD 36.55 million.

Based on market, sales in 2017 are : USD 355.11  consist of export sales USD 53.82 million and local USD 301.27 million. 

Along with the rising cost of raw materials, both raw materials of polyester and glycoethylene l raw material and the increase of crude oil price, the company raised the selling price of the product, both polyester and glycol ethylene, so the company recorded gross profit of 129.29 % or increased by USD 26.49 million from USD (20.49 million) in 2016 to USD 6 million in 2017. 

The Company has also booked a net loss of 57.35% from USD (20.57 million) in 2016 or decreased by USD 11.62 million to USD (8.64 million) in 2017.

Because of the  increase main price of raw materials that enough significant, the Company made a journal of main raw selling that increase 16% or increase amount USD 48.64 million from amount 300.45 million in 2016 become amount USD 39.09 million in 2017.

Due to the fluctuation of the exchange rate of Rupiah against foreign currency the company get benefits from the exchange rate from USD (1.7 million) become only USD (34 thousand).

With the development of such financial condition, the company is optimistic to maintain and even improve its operational performance in line with the demands of domestic and international markets.

From the success we have achieved in 2017, the company is continuously improving the quality of its products to meet customer needs continuously and the company remains committed to delivering its best efforts by continuing the Catalytic Replacement program for the MEG 1 plant, and as a cost efficiency effort and optimization of polyester production, the company plans to move the PSF (fiber line) production machine from Tangerang factory to Karawang factory.

We are fully aware that the success of the company can be achieved while still focusing on optimizing the utilization of human resources, managing assets efficiently, and maintaining good relationships with buyers and suppliers that also provide a solid foundation for companies in exploring potential markets.

As closing, we would like to express our sincere gratitude to all our employees, business partners, creditors and shareholders for their consistent support until this time. Without it all, we are unlikely to achieve results as we are today.

We believe with their continuous support, trust and dedication we will continue to grow and develop both in operational and financial aspects in the future.

 

 

Best Regards,

 

Gautama Hartanto

Presiden Direktur