Indoritel, A Company Owned By Conglomerate Anthony Salim, The Parent Company Of Indomaret, KFC, And Sari Roti, Is Driving Sustainable Growth In 2022

The management of PT Indoritel Makmur International Tbk. (Photo: Doc. Indoritel Makmur)

JAKARTA - PT Indoritel Makmur Internasional Tbk (DNET) as the holding company for the associated entities PT Indomarco Prismatama (Indomaret), PT Nippon Indosari Corpindo Tbk (ROTI), PT Fastfood Indonesia Tbk (FAST) and the parent of the subsidiary, namely PT Mega Access Persada (MAP/FiberStar) is optimistic about the prospects of its subsidiaries and associates in 2022.

At the end of 2021, revenue from contracts with customers increased by 72.72 percent to IDR 844.41 million compared to the previous year (2020) of IDR 488.88 million.

For bottom line performance, investment in associates proved to be appropriate and became the largest contributor to net profit performance. Net profit attributable to owners of the parent entity throughout 2021 grew 186.81 percent to IDR943.11 billion.

Haliman Kustedjo, President Director of Indoritel, said in Jakarta, Tuesday 19 July, that the company's optimism in topline performance is based on the successful realization of home-connected in 2021 which has reached 269.727 subscribers, supported by 31.035 km of fiber optic cable mats for high-speed internet services at a high rate. high reliability. This excellent service has even reached 135 cities/districts as of December 31, 2021.

As for optimism on performance growth based on the latest COVID-19 pandemic conditions which are gradually recovering while still observing strict health protocols. The recovery of community activities both for work, school, and other activities will push the wheels of the economy back. This is expected to have a positive impact on the associated entities engaged in the consumer and retail sectors.

This performance growth is inseparable from the Company's strategy to focus on investing in three associated entities, namely PT Indomarco Prismatama (Indomaret), PT Fast Food Indonesia Tbk (FAST), and PT Nippon Indosari Corpindo Tbk (ROTI) as well as its subsidiary, PT Mega Access Persada ( FOLDER).

"Investment policies in associates and the performance of subsidiaries are on the right track, as reflected in the financial statements in the first quarter of 2022, the company posted a positive performance," said Haliman.

MAP Subsidiary Performance

On a consolidated basis, Indoritel's revenue in the first three months of 2022 grew 66.2 percent to IDR 225 billion, compared to the performance of the same period in 2021 of IDR 135 billion.

Haliman Kustedjo said that this achievement could not be separated from the performance of its subsidiary, PT Mega Access Persada (MAP) with the trademark fiber optic broadband network, FiberStar. In this case, the company has succeeded in increasing market penetration in Indonesia so that customer connections continue to increase exponentially.

FiberStar in 2022 is targeted to have a cable length of 37,803 km with a home connected target that contributes to revenue of 327,000 units or grows 21.23 percent yoy.

Haliman Kustedjo added that this achievement made Indoritel as a holding company a solid source of income. The entry of new 5G technology and the potential for Internet of Things (IoT)-based business growth have a positive impact on the Company.

Associate Entity Contribution

Indomaret

Indoritel is currently a shareholder in PT Indomarco Prismatama (Indomaret), the largest minimarket network in Indonesia. The total shares owned are equivalent to 40 percent with total sales in 2021 reaching IDR 90.6 trillion and a net profit of IDR 2 trillion, making Indomaret the largest contributor to the Net Profit Share of Associated Entities.

Indomaret, which started from its first store in Ancol as a provider of daily necessities in 1988, has now become the owner of the largest minimarket network in Indonesia. By the end of 2021, it was recorded that Indomaret already had at least 19.500 more outlets throughout Indonesia.

By using a hub & spoke system that connects the Distribution Center (DC) and outlets, each DC is equipped with at least 100 to 110 vehicles that deliver goods to the outlets.

Haliman Kustedjo explained, throughout 2021 Indomaret has added more than 1.000 outlets and added 2 DCs located in Cikokol and Palopo. The existence of Indomaret in addition to being able to absorb local workers also helps lift the local economy, including local MSME players who partner with the Company.

KFC

Besides Indomaret, Indoritel is listed as the owner of 35.84 percent of PT Fast Food Indonesia Tbk (FAST) shares. The issuer, which carries the Kentucky Fried Chicken (KFC) and Taco Bell franchises, has successfully introduced and raised the KFC brand and market in Indonesia. And since 2020, he has started to introduce the Taco Bell brand to the Indonesian people.

The issuer with a market cap of IDR 3.7 trillion is one of the owners of the largest and most popular fast food franchise network in Indonesia. Currently, KFC has 727 outlets throughout Indonesia and 3 Taco Bell outlets.

The entry of the Taco Bell network in Indonesia at the beginning of the 2020 pandemic received a warm welcome from the public.

During the pandemic, FAST made several innovations and adaptations to survive in the midst of activity restrictions. Take-away, drive-thru, online ordering and delivery services are options to strengthen sales.

"The company believes that the improved handling of the pandemic and the recovery of community activities will have a positive impact. Lovers of fast food KFC and Taco Bell will return to filling outlets by complying with the applicable prokes," said Haliman Kustedjo.

In addition, throughout 2021 FAST will add 10 new KFC outlets and 2 new Taco Bell outlets. Meanwhile, in 2022, the company targets to open 15 new KFC outlets and 5 new Taco Bell outlets. It is believed that this step will contribute positively to the Company's financial performance in the coming years.

ROTI

Apart from Indomaret, Indoritel also has a 25.77 percent stake in PT Nippon Indosari Corpindo Tbk. (BREAD). The bread producer with the Sari Roti brand now has a market capitalization (market cap) of IDR 7.9 trillion with revenue at the end of 2021 of IDR 3.29 trillion and net profit of IDR 281 billion.

ROTI is the first and largest mass bread producer in Indonesia. The total number of factories owned is 14 factories spread across the islands of Java, Sumatra, Kalimantan, and Sulawesi.

Haliman Kustedjo explained that the construction of factories or the addition of production capacity is very important for the Company to achieve sustainable growth. Therefore, ROTI is building its 15th factory located in Pekanbaru and is expected to be completed by the end of this year. With a strategic distribution of factories, the Company hopes to continue to develop a distribution network that reaches a wider range of consumers, namely Indonesian families.

The synergy between subsidiaries and associates will enable Indoritel to continue to seize existing opportunities. Thus maintaining sustainable business growth and contributing positively to national economic growth, especially in the consumer and retail sectors.