Dharma Polimetal Optimistic To Maintain Performance In The Fourth Quarter Of 2024, Aiming For Automotive Opportunities And EVs In 2025

Photo: Doc. Dharma Polimetal

JAKARTA - Automotive component manufacturing issuer in Indonesia, PT Dharma Polimetal Tbk (DRMA) is optimistic that it can maintain performance in the fourth quarter of this year. This optimism is supported by increased work efficiency by continuously implementing the production system, one of which is by automating the production system, as well as the business world situation that is starting to get excited to welcome the start of new government work.

"So far DRMA has demonstrated its ability to manage resources more optimally and efficiently, so that the improvements achieved are able to exceed industrial growth. Therefore, maintaining a good performance in the fourth quarter of this year, while preparing to welcome 2025 is a wise step of our choice," said President Director of Dharma Polimetal, Irianto Santoso, Thursday, November 14.

In terms of increasing efficiency, DRMA's subsidiary, PT Dharma Controlable Indonesia (DCI) has recently increased the battery pack production line to be fully automatic. Through investments focused on producing battery packs for electric motorcycles (2W EVs) and this battery energy storage system, the Company hopes to boost revenue from battery pack production in line with the increasing absorption of the growth of the electric vehicle industry in the country.

Meanwhile, another subsidiary, namely PT Dharma Precision Parts (DPA) has built a new factory that will double its production area. This new factory will be the production site for BLDC (Brushless Direct Current) motorcycles, namely the main driver (motor) for 2W electric vehicles.

Currently, BLDC produced by DRMA has been used in the ICE-fueled 2W vehicle conversion business to EV. Later, the operation of this new factory will automatically create new revenue sources for the Company.

"This battery pack and BLDC are the keys to the DRMA two-wheeled electric vehicle conversion project, with the aim of creating new sales lines for the Company," added Irianto.

This strategy will strengthen the position of grip on the Company's current market share, and at the same time open up opportunities to expand its market share through the launch of a new model in the future. In this case, DRMA has been determined to increase the engineering ability in developing products that do not meet the minimum requirements for the percentage of domestic component content (TKDN).

The company sees that government regulations regarding the TKDN requirements have presented great opportunities for the growth of DRMA's business in the future. In the community, the use of electric motorcycles in the country itself continues to show a significant increase every year.

According to the Ministry of Industry's records, as many as 172,000 units of electric motor vehicles have crossed roads in Indonesia in 2024. This figure is up about 48% compared to the previous year's only 116 thousand units.

Not surprisingly, the Indonesian Motorcycle Industry Association (AISI) has increased its 2025 motorcycle sales target to 6.7 million units, up from previously made projections of 6.5 million units.

Not only that, the condition of the electric vehicle business in Indonesia seems to be getting brighter again, as can be seen from the steps taken by the Coordinating Minister for Economic Affairs Airlangga Hartanto who proposed to continue several priority incentives in 2025. One of them is the 1 percent VAT incentive for electric cars.

If realized, the proposal will certainly increase the driving force for the growth of the electric vehicle market in Indonesia in the future. In this case, to be able to get these incentives, these electric vehicles must be produced directly in Indonesia with a minimum TKDN percentage of 40 percent.

And at the same time, this incentive will also spur the growth of the local component industry. Seeing all these opportunities, DRMA has further sharpened its focus on targeting various business opportunities in the electric vehicle segment by developing the 'Dharma Connect,' which is a collaborative ecosystem that encourages the development of electric vehicles.

In this case, the Dharma Connect (DC) collaborative ecosystem is divided into five segments, namely the DC Battery (battery pack & energy storage system), DC Power (slow & fast charging station), DC Motor (BLDCHub & Mid Drive Motor), DC Solar, and DC Cross (2W & 4W EV Convertion).

DRMA itself continues to show improvement in its performance. In the third quarter of this year, the Company posted sales of IDR 4 trillion. In this unfriendly industrial situation in 2024, the Company can record sales growth of 20 percent QoQ.

Although compared to the previous year there was a 5 percent decline. Operating profit was recorded at IDR 548 billion, up 65 percent QoQ, although it fell 20 percent YoY.

The net profit attributable to owners of the parent entity was recorded at IDR 412 billion, an increase of 69 percent QoQ.