Pupuk Indonesia Successfully Received IDR 929 Billion Net Profit In The First Quarter Of 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Pupuk Indonesia (Persero) posted a profit of IDR929 billion during the first quarter of 2021. This amount is equivalent to 104 percent of the Company's Work Plan and Budget (RKAP) target.

Director of Finance and Investment in Fertilizer Indonesia, Eko Taufik Wibowo, said that the company's profit achievement was driven by an increase in the efficiency of operating expenses and financial expenses. In addition, it is also driven by the efficiency of consumption of gas raw materials, increased sales of non-fertilizer products and non-commercial fertilizer products.

The decrease in operating expenses occurred due to the efficiency efforts made by the company. Especially in terms of accounts receivable management, lowering interest expenses, and efficiency in various fields, including supply chain efficiency.

"One of them is through a warehouse repositioning program to reduce distribution costs," he said, in Jakarta, Thursday, May 6.

Eko said Pupuk Indonesia recorded a sales volume of 3.3 million tons until March 2021. The company will prioritize domestic fertilizer needs, especially subsidized fertilizers with total distribution until March this year reaching 1.93 million tons and will increase when entering the 2021 planting season. .

The rest, said Eko, is the sale of non-fertilizer products and non-commercial products. Meanwhile, the total production for all types of fertilizers reached 4.93 million tons or 107 percent of the RKAP target.

"Factory reliability also contributes to efficiency because the factory can operate optimally, thus reducing the ratio of gas raw material consumption," he explained.

Eko said that the positive performance will continue to be improved so that the targets in the 2021 RKAP can be met. The Company also actively encourages efficiency in operating expenses and financial expenses so that the company can better face business competition going forward.

Furthermore, Eko said that the performance in the first quarter also shows that Pupuk Indonesia continues to show good competitiveness in the midst of a pandemic. This is of course supported by the performance of the agricultural sector, which shows a positive trend even during the pandemic.

"In the future, to maintain and improve performance, Pupuk Indonesia has implemented a number of strategic initiatives. Among them are increasing digitalization, production efficiency and supply chain, as well as a number of programs such as agrosolution and retail management," he said.