AKR Corporindo, This Fuel Company Owned By Soegiarto Adikoesoemo Received IDR 924.91 Billion Profits In 2020

Soegiarto Conglomerate Adikoesoemo. (Photo: Wikimedia Commons)

JAKARTA - PT AKR Corporindo Tbk recorded a positive performance in the 2020 financial year. The company coded AKRA posted net income for the year attributable to the parent entity amounting to IDR 924.91 billion throughout 2020.

This achievement increased by 29.6 percent from AKR Corporindo's realized net profit in 2019 which was only IDR 713.62 billion. Quoted from AKRA's financial report published on the Indonesia Stock Exchange (IDX) website, AKRA's 2020 net profit per share rose to IDR 233.53 from the previous IDR 180.28 per share.

However, the increase in net profit is not in line with the increase in revenue achieved by the company owned by Soegiarto Adikoesoemo. This company that distributes fuel oil (BBM) recorded revenues of IDR 17.71 trillion, down 18.38 percent from the previous year which reached IDR 21.70 trillion.

The increase in net profit was driven by a decrease in AKR Corporindo's expenses last year. The cost of goods sold decreased 20.91 percent to IDR 15.66 trillion from IDR 19.81 trillion previously.

Selling expenses also decreased 54 percent to IDR 57.85 billion from IDR 125.54 billion previously. However, the general and administrative expenses of the company owned by the 46th richest person in Indonesia rose 17.26 percent to IDR 788.64 billion from IDR 672.54 billion previously.

Meanwhile, AKRA's assets as of December 31, 2020, were recorded at IDR 18.68 trillion. It consists of liabilities worth IDR 8.13 trillion and equity worth IDR 1055 trillion.

As for AKRA's cash equivalents as of December 31, 2020, amounted to IDR 1.55 trillion, a decrease from the position of cash equivalents in the previous year which reached IDR 1.86 trillion.

The growth in net profit, said President Director of AKR Corporindo Haryanto Adikoesoemo, shows the company's strong business model. This is because, even in the midst of the COVID-19 pandemic, the company is still posting consistent performance.

"Investing in storage facilities at major ports, logistics networks, and IT platforms is the key to success in delivering products to customers on time and without obstacles. In addition, achieving operational efficiency improves performance", said Haryanto.

So far, AKR has invested IDR 7 trillion in the last five years. These funds are used to improve Indonesia's logistics infrastructure and connectivity.

Haryanto explained, this investment includes the Java Integrated Industrial Port Estate (JIIPE) which has contributed to the company's profitability. JIIPE offers many advantages, such as a deep seaport, one-stop utilities and services, and ease of licensing.

"Together with the KEK status and the Job Creation Law, JIIPE will attract many investors", he said.

As of March 2021, AKR has sold 14 hectares of land in the JIIPE area. The sale of this land will certainly have a significant impact on the company's profitability in the first quarter of 2021.