Release Shares To The Public, Automotive Component Components Of Astra Group Select Capital Market To Add Funding Sources

JAKARTA - PT Isra Presisi Indonesia, a company engaged in the industrial machinery and machine tools for metal work, is optimistic that the Initial Public Offering (IPO) will encourage the company's business growth.

"We see the capital market as the right source of funding to increase working capital, thus encouraging Isra's growth," said PT Isra Presisi Indonesia President Director Asrullah in a statement quoted by Antara, Monday, November 7.

Meanwhile, Director of PT Isra Presisi Indonesia Imam Hozali said the company, which is the construction of the Dharma Bhakti Astra Foundation (YDBA), also has a great opportunity to develop the market.

The company has been assisted by YDBA for 11 years, as well as being a component supplier to the Astra Group.

"Apart from being a YDBA fostered company, we are also a business pair company of PT Astra Mitra Ventura. Every three years, we are re-assessed by YDBA. We also received an award from YDBA as the 2018 Best Manufacturing Mandiri UKM," said Imam.

Imam assessed that the business prospects for automotive components and heavy equipment will still be very potential in 2022 and next year.

"Our current factory capacity is overcapacity," said Imam.

This optimism emerged in line with the growth in the production of heavy equipment and its components which are projected to reach 30-40 percent by 2022. Based on data from the Indonesian Heavy Equipment Industry Association (Hinabi), 2022 production will range from 8,000 units.

Meanwhile, the Association of Indonesian Automotive Industries (Gaikindo) is targeting car sales of 900 thousand units by 2022, while the Indonesian Motorcycle Industry Association (AISI) is targeting sales of 5.4 million motorcycles.

"In 2022, Isra Presisi Indonesia is targeting revenue to grow in line with the growth of the automotive component industry and heavy equipment," said Imam.

Isra Presisi Indonesia provides a dies, moduld, checking fixture, stamping part, and injecting to Astra Group, tier 1 and 2 Astra Group, in accordance with the specifications and number of orders.

Currently, the company owns and operates two factories in the Delta Silicon III Industrial Estate, Lippo Cikarang, Bekasi, West Java.