INVESTOR MEMO
Financial Year 2019
2019 was an extraordinary year for PT Pelabuhan Indonesia III (Persero) or Pelindo III.Many things have been achieved, the most important is the achievement of both operational and financial performance that continues to rise from previous years..
Overall, PT Pelabuhan Indonesia III (Persero) recorded a very encouraging operational improvement. The excellent service provided by Pelindo III and the modernization of equipment that is always done is a weapon for Pelindo III to attract customers. almost all service sectors provided by Pelindo III, such as ship service, container service and non-container service, showed an increase from the previous year. an increase in operations directly has implications for improvements in Pelindo III's financial performance. The number of assets that continues to increase from year to year, shows that Pelindo III is becoming an increasingly large company.
W o r l d W i d e S m a r t O p e r a t o r
PELINDO III
100% owned by Government of Republic Indonesia
GLOBAL BOND
1st Issuance
Date : October 1st 2014 Amount : USD 500 Million Tenor : 10 Year
Coupon : 4.5%
2nd Issuance
Date : May 2nd 2018 Amount : USD 500 Million Tenor : 5 Year
Coupon : 4.5%
CORPORATE RATINGS
Moody;s : Baa3 (Stable) Fitch : BBB- (Stable) S&P : BBB- (stable)
SHAREHOLDER STRUCTURE
The operational performance of PT Pelabuhan Indonesia III (Persero) (Pelindo III) in 2019 showed an encouraging increase from the previous year. in 2018 the number of ship calls in Pelindo III was recorded at 68,153 units, this year increasing by 15% to 78,267 units. The number also increased by 12% when compared to the company's 2019 budget plan of 69,744 units.
OPERATIONAL PERFORMANCE
Whereas in Gross Tonage (GT) units the increase in Ship calls in the Pelindo III region recorded an increase of 11% compared to the previous year. in 2018 ship calls amounted to 274.6 Million GT, this year there were 304.2 Million GT. This was caused by an increase in dry bulk ship calls on coal commodity ship-to-ship activities in Bunati with large GT sizes. Increased visits of fuel oil liquid bulk vessels and non-fuel oil bulk vessels berthing on Jamrud Terminal, Nilam Mirah Terminal, Tanjung Intan Port and Tanjung Emas Port. Increasing the number of barge and tug boat visits at the Port of Tanjung Emas as a result of cargo unloading using the ship to barge method, similar things also occurred at Trisakti Port, which is a significant increase in barges and tug boats at Banjarmasin rede / loading point that has a passing activity from Bakut Island to the Taboneo ship to ship area and vice versa.
2018 2019 2018 2019 2018 2019
68.15 78.26 274.6 304.2 72.88 75.12
15% 11% 3%
Ship Traffic (unit)
In unit Ship Traffic (GT)
In million
Goods (Ton)
In million
Ship calls in the Pelindo III region recorded an increase
of 11% compared to the previous year
2018 2019 2018 2019 2018 2019
5.33 5.42 3.087 3.670 142.6 128.5
2% 19% 10%
Container (TEUs)
In unit Passenger (Person)
In million
Animal (Head)
In million
The Traffic of goods in Pelindo III also increased. In 2019 there were 304.2 million tons, up 11%
from the previous year which was only 274.7 million tons. The large increase in the traffic of goods at Pelindo III was due to an increase in PT S2P's coal commodity at Tanjung Intan Port due to new units operating so that the demand for coal increased, an increase in liquid bulk traffic at the Kotabaru Port was good for the commodity of High Speed Diesel liquid fuel owned by PT AKR and non-BBM (asphalt) liquid bulk, increased coal commodity at Mekar Putih Port, Rolimex and Agrotaradisi's increased fertilizer commodity and wheat unloading services for new customers of PT JNP Logistik and PT Ampel Jaya at BJTI Port.
As well as changes in the pattern of shipments at the Teluk Lamong Terminal by customers who have switched to the shipment direct calling pattern, as well as an increase in BULOG's corn imports and PT Harvestar Flour Mills' wheat.
While for container Traffic, although not too significant, Pelindo III also managed to record an increase in this sector. in the previous year container traffic was recorded at 4.31 million Boxes, in 2019 Pelindo III recorded container traffic of 4.37 million boxes. In TEUs, container traffic were 5.33 million TEUs in 2018 and increased to 5.42 million TEUs in 2019. This increase was still influenced by containerization which was considered more practical by Pelindo III customer.
The increase of Container Traffic influenced by
containerization which was considered more practical
The increase of Container Traffic influenced by containerization which was considered more practical
As a gateway to the economy of Eastern Indonesia, Pelindo III recorded encouraging domestic container growth from year to year. in 2018 domestic container flows were recorded at 3,022 million TEUs and increased by 4% in 2019 to 3,131 million TEUs
2.295
3.131
International Domestic 2.315
3.022
International Domestic
Container Traffic
2018 2019
For passenger traffic, Pelindo III also recorded an increase in 2019 when compared to 2018. In 2018 the flow of passengers was 3.0 million people, while in 2019 that number increased by 19% to 3.6 million people. That is due to the transfer of air transportation modes to sea transportation modes, where the price of ship tickets is more competitive than the current domestic plane ticket prices, as well as the free homecoming program with SOEs organized by PT Pelindo III (Persero) in several ports between others: Tanjung Perak Harbor, Tanjung Emas, Banjarmasin, Kumai, Sampit and Batulicin. The addition of a new schedule or new fleet by passenger ship operators in several ports in the area of PT Pelabuhan Indonesia III (Persero) also affects the achievement of passenger traffic.
While the animal Traffic in 2019 was realized at 128,561 head, this was influenced by an increase in demand for imported beef at Tanjung Intan Port and an increase in the demand for livestock at the Tenau Port of Kupang and the Port of Waingapu.
FINANCIAL
PERFORMANCE
2019 was a difficult and exciting year for Pelindo III, this year, the company's net profit was recorded at Rp. 2,129 Trillion, an increase of 54% compared to the previous year which was only recorded at Rp. 1,385 Trillion due to foreign exchange losses.
Meanwhile, operating revenues for 2019 decreased slightly compared to the previous year. this year, operating revenue was recorded at Rp. 9,776 Trillion, down 4% from the previous year. Revenues that did not reach their budget included ship service revenue, container service revenue, non- container goods service revenue. Of Pelindo III's operating revenues, the three revenues contributed around 79% of total revenue. Container Service Revenues accounted for 58% of the total or around Rp. 5,728 Trillion. While ship service revenues contributed Rp. 1,102 Trillion or around 11% and 10%
came from non-container service revenue or Rp. 1,034 Trillion.
2018 2019 2018 2019 2018 2019
10.175 9.776 6.880 7.035 1.385 2.129
4% 2% 54%
Revenue
In Trillion IDR Expenses
In Trillion IDR
Net Profit
In Trillion IDR
2018 2019 2018 2019 2018 2019
10.355 11.047 30.506 30.756 4.544 4.036
7% 1% 11%
Equity
In Billion IDR Assets
In Billion IDR
Ebitda
In Trillion IDR
In 2019 the cost efficiency remained the main target in the management of the company, but the expenses continued to increase by 3% compared to 2018 from Rp. 6.879 trillion to Rp. 7.072 trillion.
The biggest contributor to the increase was an increase in third party resources expenses, employee benefit, depreciation and amortization expenses. In a row the size of the three is 1.872 T, 1.621 T and 1.269T.
CAPITAL EXPENDITURE
The absorption of Pelindo III investment projects in 2019 reached Rp. 3,821 Trillion with the largest absorption was in port facility building investment of Rp. 1,487 Trillion or around 38.9% of the total budget, while the second largest was roads and port facilities of Rp. 1,125 Trillion or 29.4% of the total. This year there were a number of programs that had not yet been completed due to several factors requiring the time needed to process the related permit, process certainty of cooperation (MOU), further studies, and coordination between project work and operational activities, less than maximum contractor performance.
The following is a highlight of several Pelindo III investment programs in 2019
Cruise and Container Wharf of Terminal Gilimas
Started since March 20, 2018 Cruise and Container Wharf has a contract value of Rp.
267.2 billion and it is expected could be completed in January 2020. Until the end of the year the progress of the Cruise Wharf and Container Terminal physical development reached 98.62%.
Pelindo Place / Tower Poros Maritim
The construction has been started since May 9th, 2018 with a contract value of Rp. 500 billion and it is expected could be completed in February 2020. Until the end of the year the progress of the Pelindo Place / Tower Poros Maritim construction physical development reached 81.5%.
Fly Over Terminal Teluk Lamong
Started since April 2, 2018 Teluk Lamong Terminal Fly Over Project has a contract value of Rp. 1.3 trillion and it is expected could be completed in March 2020. Until the end of the year the progress of the fly over physical development reached 77%.
Beautification’s Port of Benoa
This project has been started since April 9, 2018 with a contract value of Rp. 78 billion and it is expected could be completed in March 2020. Until the end of the year the progress of the physical development reached 95.89%
.
As a form of innovation and development that continues to be carried out by Pelindo III, in 2019, together with the Ministry of State-Owned Enterprises, the Ministry of Transportation, the Ministry of Tourism and several other Ministries, Pelindo III plans to develop the Benoa Port to become the Benoa Integrated Maritime Hub with a focus towards Cruise Ship services and integrated maritime tourism. In addition, two new ports will be built in the first Pelindo III area in the Santong Bay, Bima. While the second is in Labuan Bajo, West Nusa Tenggara. Both are planned to be used as multipurpose terminals that will help in developing the economy in Eastern Indonesia. The construction of the Benoa Integrated Maritime Tourism Hub and the two ports in Eastern Indonesia will begin work in early 2020.
RECENT UPDATE
DISCLAIMER
This d o c um e nt containts certain financial information and result of operation, and may also contain certain projections, plans, strategies, and objectives of Pelindo III, that are not statements of historical fact wh i c h wo u ld be treated as forward looking statements with in the meaning of applicable law. Forward looking statements are subject to risks and uncertainties that may cause actual events and Pelindo III future results to be materially different than expected or indicated by such statements. No Assurance can be given that the results anticipated by Pelindo III, or indicated by any such forward looking statements will be achieved.
The financial information provided herein is based on Pelindo III consolidated financial statements in accordance wit h Indonesian Financial Accounting Standards.
