Company analysis
Bakrie & brothers is
established in 1951, its former name was NV Bakrie & Brothers. The company
is engaged in various businesses such as construction, steel pipe
manufacturing, construction product and etc.
Bakrie & Brothers is owned
the bakrie family; one of tycoons in indonesia, Bakrie is also having other
business such as media, energy and telecommunication. Aburizal Bakrie, the
leader of Bakrie group is a politician of Golkar party.
In 2012 Bakrie and Brothers has
divested its ownership in Bumi Plc, parent company of Bumi resources. As the
result of that its total asset declined from IDR 15,658 billion in to IDR
11,878 billion in 2012, the decline was caused by the decline in its
non-current asset from IDR 8268 billion in to IDR 4575 billion. The decline in
non-current asset decreased net revenue significantly in 2012.
In 2015 Bakrie auto parts, the subsidiary of
Bakrie & Brothers is qualified as Global auto parts supplier of Mitsubishi
Fuso – Daimler. This advancement is probably able to increase net revenue in
the future. It would export the auto part product Mitsubishi factories at
oversea. Bakrie auto part is related with Krama Yuda Tiga Berlian and
Mitsubishi Krama Yuda.
In 2015, the net revenue declined
more than 26 % in comparison with net revenue in 2014. As the result of that
the net profit dropped in significant number. The drop in net profit was not
only occurred because of dropped revenue but it was also happened because of
provision cost in 2015. The company posted provision amounted to IDR 968
billion. The net profit decreased from IDR 151 billion in 2014 in to IDR -1,7
trillion in 2015.
This provision was charged for
its short term investment. The provision
for impairment loss decreased its short term investment from IDR 2.588 billion
in 2014 to IDR 438 billion in 2015. If the provision is added back to its net
profit, the loss was at around IDR 751 billion.
More than 81 percent of total
revenue in 2015 was contributed by Infrastructure & manufacturing segment.
Its segment comprises infrastructure, manufacturing and trading, services and
investment. Its mining segment has been separated from its consolidated
financial statement.
Bakrie
Global Group
Bakrie Global group which is
controlled by Aburizal Bakrie, it has been investing in Path, social media
platform that was established in Silicon Valley. Their investment in 2014 was
amounted to USD 25 millions. Dave morin, CEO of path, was visiting Jakarta to
meet with his new investor. According to mortin, there are 4 million users of
path in indonesia, they have significant influence in path.
Bakrie group argued that the
investment will make Indonesians more connected and productive as their assertment
in their twitter. The investment possibly used to create application in path.
Another social media, facebook, has already had many applications in its
platform.
