Directors Report
  • Dear Shareholders,

    With gratitude to God Almighty, we reported that the Company performance in 2017 gave good results in line with the strong growth of global economic and the on going recovery of Indonesia's economic growth.

    In 2017 the crude oil price was more stable than in 2016 and the implementation of Management strategies has pushed up the Company 2017 consolidated sales value by 16.09% from USD 276.11 million in 2016 to USD 320.55 million. With such increase in sales, the Company recorded earning before tax of USD 17.65 million in 2017, increased by 54.79% from USD 11.41 million of previous year.

    In 2016, the Company recorded profit for the year of USD 21.12 million, where as in 2017 the profit of the year was USD 11.93 million. In 2016, the Company recorded a net deferred income tax benefit from revaluation of fixed asset.

    At the end of 2017, the Company commenced operating the new jetty at the Company's factory at Merak with a capacity of 50,000 DWT. The operation of this new jetty will save the raw material supply chain cost. The Company also plan to make several efforts to increase efficiency of production without jeopardizing quality.

    The Company sales are predominantly domestic sales in Rupiah, meanwhile the Company major raw materials are mostly imported, therefore the risk of foreign exchange against Rupiah is very significant. The Company closely monitor and maintain the balance between the asset and the liabilities in foreign currency and hedge foreign currency against Rupiah.

    Global economic growth in 2018 is projected to be 3.1% which is better than the achievement in 2017. This increase is driven by continued expansion in manufacturing sector as a result of reviving trades. Economic growth in developing countries has also strengthened as it is supported by escalating export activity and rising commodity prices. This has a positive impact on the growth of national economy. In 2018 Indonesia's economic growth is projected at 5.4% which is an increase from 2017.

    The increase of economic and population growth provide bright future for the detergent industry. Detergent consumption in Indonesia has huge potential to grow since detergent consumption per capita is still relatively low compared to developed countries. Therefore, we are optimistic for the future of the Company and ready to increase production capacity to meet domestic market demand and even increase exports.

    Indonesian bright future also attracts overseas competitors to enter Indonesian market, thus competition with imported product will continue to threaten the Company. Therefore it is important and expected that Government to protect operational stability of domestic producers, one of which is by lowering energy cost which is still considered high compared with the energy cost in certain countries. High energy cost causes high production cost which may lead to uncompetitiveness.

    We will continue ensuring and securing supply of product to domestic market and optimizing cost efficiency. We will explore the possibility of expanding our business to strengthen our position as the integrated producer and also to secure the raw material supply. We are also ready to increase production capacity to meet the Alkylbenzene demand in the coming years.

    The Company is aware that implementation of the Good Corporate Governance (GCG) is an important part of managing Company operation to meet the expectations of stakeholders and to increase the value for Shareholders. Therefore the Company ensures the basic principles of GCG of transparency, accountability, responsibility, independency and fairness are implemented in all and every level of Company management. The implementation of GCG is intended to ensure that the Company is run and managed in accordance with the laws and regulations and also meeting the prevailing business ethics.

    The Company has complied all requirements for reporting and for transparent information in timely manner to all stakeholders. The Company also ensures that the Company's bodies such as General Shareholders Meeting, Board of Commissioners, Directors and other supporting bodies such as Audit Committee, Internal Audit Unit and Corporate Secretary are well functioned to support the implementation of GCG in the Company.

    As part GCG implementation, the Company also provides awareness to the surrounding environment in the form of corporate social responsibility, both in the Company's working environment as well as in community environment. The Company always attempts to maintain the health and safety of its employees and create a comfortable and natural working environment around the Company.

    The Company also participating in the community activities and improve the opportunities for Indonesian children, especially children around the Company's environment to get a better education, by providing building and school facilities and also scholarships for outstanding students.

    Last but not least, we are sincerely thankful and grateful to all Shareholders, Customers, Suppliers, Banks, Creditors, Business Partners, Employees and all stakeholders for the strong supports, cooperation and cares without which the Company would not have run smoothly and have grown like now.


    -j

Investor Relations
  • Board of Commissioners Report
  • Directors Report
  • Management Discussion and Analysis
  • Consolidated Statements of Comprehensive Income
  • Consolidated Statements of Financial Position
  • Financial Highlights Graphics
  • Ratio Analysis
  • Business Prospect and Strategy
  • Competitive Advantage and Risk Management
  • Shares, Dividends and Chronology of Company Listing
  • The Significant Laws and Regulations Changes
  • Annual Reports
  • Quarterly Financial Statements