AKRA

Preface

According to JISDOR (Jakarta interchange spot dollar rate), rupiah’s exchange rate to US in 2 October 2015 was at 14,709 / USD. The weakened rupiah may be occurred due to the capital outflow which is bigger than the capital inflow.

It has been occurred persistently during the year. The Fed was printing money in large amount and they implement the rate at almost zero level. It was called quantitative easing. As a result of that, people at US have been able to get loan with low interest cost compared to others and this money is used to invest in many countries. The money commonly is used to invest asset in capital market.

 Their bank regulation allowed them to borrow money for investing in stock and bonds which tend to use for speculation or short term investment. On other hand price of commodity is still not improved, the export amount was difficult to be increased. China, the biggest market for commodity

As long as the inhabitant is able to buy the basic food with suitable price and people have job with sufficient salary, the politic situation will be save.

They abandoned Gold standard for war

The central bank of US and several European countries started to left gold standard since World War I, in the era of Woodrow Wilson, the US government decided to increase money supply significantly since 1917 until 1919. The federal outlay in 1917 was USD 1,954 million which is much lower than federal outlay in 1919; it was amounting to USD 18,493 million. The France government was borrowing money from US to finance the war.

In gold standard the nation which experiences persistent trade deficit, their gold reserve is pulled a way to cover their deficit. The Gold is used to back up the currencies. Central bankers from countries usually conduct a meeting to settle the imbalance with gold. In 1914 there were more than 44 countries which were in Gold Standard.

Company Analysis

The major part of income of the company in 2014 was contributed by its trading and distributor segment which was more 90 % of its total revenue. In 2014, the sales was higher than sales in 2013. It slightly increased 0.6 % than 2013. The company was chosen as the subsidized petroleum distributor by BPH Migas in 2014 with quota amounted to 650,000 Kl.

Since 2005 government has allowed the private sector to distribute to subsidized petroleum and the company was the first private company which was elected as distributor. The subsidized products are High speed diesel and gasoline Ron 88.

The revenue in petroleum distributor segment is expected to increase in the future as the petro station to population ratio is still low in 2014. They expected to get more quotas and distribute more petroleum product.

The company has also run in basic chemical trading, it is selling  basic chemical which is used as raw material in various industry such solvent, organic and inorganic chemical. The basic chemicals are Hydrocholic achid, Soda Ash Dense, Sodium sulphate and etc.

The company has also operated in non subsidized petroleum distribution; the allocation of subsidy for petroleum was also opening new opportunity for business in petroleum trading for the company.

Integrated industrial estate

In 2014 the company started to establish integrated industrial estate in east java. It combined industrial estate with its logistic at deep seaport and energy solution. The company joined cooperation with Pelindo III to build Java Integrated industrial and port estate in Gresik – east Java. The company has acquired land with total area more than 3000 hectare.

According to its financial statement the clients which have more than 10 % of its total income are PLN and Freeport Indonesia. (source : annual report)