GJTL 2015

The company was established in 1951, based on its notarial deed no.54 dated August 24^th. The company owns plants in Tangerang and Serang, its head office is located on Hayam Wuruk Street, Jakarta. The corporation produces tires and tube for vehicle and goods.

The company has affiliated group at Europe, USA and China. GITI has head quarter office in Singapore. The famous brands are GT radial, GITI, Primewell, Runway and Dextero. The company has sponsored many sport show such as US-based formula drift as its promotion.

The company and its group have 8 plants in china and indonesia, one plant in south Carolina in USA. Based on annual report in 2015, the ultimate share holder of Gajah Tunggal is Denham Pte Ltd which owns 49.5 % shares. Another big shareholder is Compaigne Financiere Michelin which has 10 % shares.

Manufacture of rubber based product industry tend to be categorized as cyclical sector, it is influenced by business cycle. In 2016 the sales of automobile slightly increased. In 2016, the automobile industry started to recover.

In October 2016, the sales of car at period of January – October increased 4.05 % higher than sales in same period in 2015. Based on data from GAIKINDO, the national sales of car on October 2016 was 874,847 units. Whereas, based on AISI the national sales of motorcycle at period of January – October was 4,992,598 units. It decreased 9 % lower than sales in same period at 2015.

In 2015 the revenue slightly decreased 0.8 % compared to sales in 2014. Gross domestic product in 2015 was under 5 % or the slowest growth at the past five years. It influenced automotive sector including rubber industry. Inversely, the gross margin in 2015 was improved than gross margin in 2014, it increased from 22.9 % in to 24.5 %. Then, the company experienced loss in 2015 due to incremental of interest expense and other expense in the year.

In 2015 the company increased its debt to finance its capital expenditure, it developed new building and purchased new machine for its expansion business plan. The project was predicted accomplished in 2016.