Automotive Component Producer Owned By Conglomerate TP Rachmat Experiences A 35 Percent Increase In Demand

JAKARTA - The automotive component manufacturer owned by conglomerate TP Rachmat, PT Dharma Polimetal Tbk (DRMA) continues to experience a surge in demand when compared to the average January-April 2022 demand. Even the company claims that October's automotive component demand has increased to 35 percent.

President Director of Dharma Polimetal (DRMA) Irianto Santoso said the increase in the average demand for the company's automotive production component in August rose by 20 percent. The DRMA automotive component for September is expected to increase by around 30 percent, while orders for October are expected to increase by 35 percent from the average demand period January to April 2022.

"The request in the third quarter, outside July was very good. Hopefully, the fourth quarter will be even better," said Irianto in an official statement, quoted Wednesday, September 21.

Irianto added that the surge in demand for automotive components in the third quarter occurred, among others, due to the shortage of semiconductors due to the lockdown in Shanghai which had hampered automotive production. Meanwhile, along with the process of recovering the semiconductor supply, Indonesia's economic recovery after the pandemic is also ongoing.

"Therefore, so far the increase in fuel oil prices (BBM) has not stopped the growth in demand for automotive components," he said.

Furthermore, Irianto said, these reasons made Dharma Polimetal remain optimistic that the 2022 revenue growth target of 20 percent and net profit growth of 50 percent would be achieved.

Meanwhile, until the first semester of 2022 DRMA posted a net of IDR 144.59 billion, up 44 percent on an annual basis. The surge in net profit was supported by the company's success in recording sales of IDR 1.59 trillion, an increase of 22 percent from the same period the previous year.

In addition, he continued, DRMA has invested in increasing the capacity of human resources and technology to anticipate the development of electric vehicle trends in the future.

For information, the company made a number of innovations by capturing opportunities in the electric vehicle era in Indonesia. The prototype of a three-wheeled electric vehicle with the PowerAce brand has been designed. Likewise with the development of battery packs, battery management systems, bodies, and chassis parts that match the specifications of electric vehicles.

"We continue to innovate to maintain the trust of a leading automotive brand that has high standards in its products. The Company strives to improve the best technical expertise and skills in order to maintain the quality of the products produced. By continuing to maintain trust from customers through good and consistent performance, the company is on the right track to continue its growth," concluded Irianto.