ASII 2015

Company Analysis

Astra international is subsidiary of Jardine cycle and carriage which is located in Singapore, Jardine C& C has 50.1 % shares, it is fully controlling Astra International. Jardine C & C is also having subsidiaries in Vietnam, Thailand, Singapore, Myanmar and Malaysia.

Jardine C & C run its various businesses in various segment, it comprises Direct motor interests and Astra international (automotive, financial services, infrastructure and logistic, heavy equipment and mining, agribusiness and information technology).

In 2015 jardine c&c acquired 24 % Siam city cement public company in Thailand and 22.9 % Refrigeration electrical engineering Corporation in Vietnam.

In 2015 net revenue of AI declined -8.7 % down due to slower economic growth in indonesia in 2015. The purchasing power of the consumer dropped due to the slowdown economic. The export of commodity declined as the demand from the emerging market dropped. As the result of that exchange rate tend to drop. The Agribusiness segment of AI was suffered in 2015, it s revenue sharply decreased, its revenue in 2015 declined 19.9 % compared to its revenue in 2014.

Financial services and information technology are two segments which continue to grow in 2015, net revenue of financial services increased 9.5 % compared to its revenue in 2014 and net revenue of information technology grew 16.3 % compared to its revenue in 2014.

Whereas the net revenue of 2015 in automotive segment declined more than 10 % compared to net revenue in 2014. Astra Honda Motor, its subsidiary, was beginning to sell the product at Philippines, the has exported motor cycle to the country to cover the decline of sales growth in indonesia.

Based on annual report both the market of motor cycle and the market cars fell. However the company was able to its market share both in cars and motor cycle, subsequently those were 50 % and 69 %.

 In 2015 the company continued to expand in its strategic business, it acquired several companies overwhelmed Acset Indonusa, Sumbawa Jutaraya, SKF Indonesia and Semarang –Solo Toll road. At the same year the company through its subsidiary, Astra Otoparts, was also building joint venture company with Bridgestone to produce tire.

In the same year its parent company, Jardine C&C entered new segment, cement industry. It acquired Siam City Public Company limited.

The CEO of Astra Graphia was called by eradication commission for corruption due to the corruption in e-ktp program. The case has been investigated by KPK since 2014, the suspect was Mr. Sugiharto. Astra Graphia supported the PNRI consortium, the loss in the project was amounted to more than IDR 2 trillion rupiah.

Although the company experienced decline both in its revenue and net income, the company keep maintain its gross margin and profit margin.  Among of the brand of the product were also stood as leader in its market share such as Honda, Toyota and Komatsu.