BNBR 2015

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.