Business Rebound Comes Faster than Expected: IPCC

After suffering sharp drop from April to December 2020 amid the pandemic Covid-19 outbreak, Indonesia’s leading car terminal operator PT Indonesia Kendaraan Terminal Tbk (IPCC), started to enjoy a business recovery, a volume rebound. Even, coming to first month of the second quarter (April), the volume grew so fantastic, reaching the level over normal period.

“It is beyond our expectation. The business rebound is coming faster than what we have expected,” IPCC President Director Arif Isnawan told Indonesia Shipping Gazette yesterday (Tuesday, May 25).

Even, the total volume until April has exceeded the target, which was mostly contributed by April.

In April, IPCC international terminal enjoyed a fantastic growth. All export import of CBU (Complete Build Up), heavy equipment, and spare parts increased fantastic, both month to month (compared to March 2021) and year on year (compared to April 2020).

IPCC data says, total export import of CBU in April grew 75.88%, to 25,450 units, from 14,470 unit in April 2020, which was mostly contributed by the increasing export. Of this total international CBU volume, export grew 99.06%, from 11,122 units in April 2020, to 22,140 units in April 2021.

Heavy equipment (truck and bus) also grew up, to 1,015 units, increasing 66.94% compared to April 2020. The export of heavy equipment grew up so fantastic by 927.12%, while in April last year, the export of heavy equipment was only 59 unit.

Such like CBU and heavy equipment, the international volume of spare parts in April also grew up fantastic. Total volume of spare parts in April reached 1,684 metric-cubic, increasing 142.86% year on year.

IPCC domestic terminal also enjoyed a very positive growth. In April, the domestic terminal handled as many as17,202 units, increasing 338.38% from 3,924 units in April 2020. The heavy equipment in domestic terminal also increased fantastic, from 679 units in April 2020 to 2,023 units in April this year.

The domestic terminal also enjoyed a growth of spare parts volume with a very fantastic growth of 3,214.32% year on year, from only 111 to 3,672 metric tons in April 2021. It also enjoyed a growth of two-wheels vehicles which increased from only 392 units in April 2020 to 8,545 units in April 2021.

Exceeding Normal Period

Cumulatively, from January to April, the volume is higher compared to 2020 and 2019. During the period, IPCC international terminal handled 116,195 units of CBU, up 9.02%, which was dominated by export of 100,818 units, a 12.28% year on year.

“Noted that the pandemic had not affected the volume in January-March last year. The pandemic effect occurred since April 2020. So, what we can conclude is that our volume of the first four-months this year actually had come to normal, even higher than the normal period,” Arif said.

IPCC also enjoyed an increase of heavy equipment export, by 0.58%, 2,243 units from 2,230 units in the same period last year. The spare parts also increased, by 17.99%, to 19,089 metric-cubic, from 16,178 metric-cubic in the same period last year.

The domestic terminal also enjoyed a cumulative growth. Data says, domestic CBU volume reached 17,202 units, increasing 23.17% from the same period last year. The heavy equipment increased 14.39% to 7,105 units and the spare parts increased fantastic by 835.73% to 11,319 metric-cubic. The two-wheels vehicles meanwhile increased 129.46%, to 17,090 units.

Optimism to Exceed Target

In view of the increasing trend and considering the change of regional distribution model, Arif is so optimistic to reach, even to exceed this year target.

“Our target for this year is contracted to 80% of our normal realization before pandemic. But, we are so optimistic to exceed it in view of the trend, reflected in the first four month data, especially the data of April,” Arif said.

In addition, according to Arif, IPCC will also be benefitted from the decision of some automakers to choose Indonesia (Jakarta) as the centre of distribution and production. “We are so sure this will benefit us, helping to further increase our volume,” said Arif.

As the reports said, following its move to expand production in Indonesia in 2019, South Korea Automaker Hyundai is set to begin manufacturing electric vehicles (EV) in Indonesia in 2022. The Korean automaker is presently constructing a new assembly plant in Cikarang, West Java, and this is expected to be completed by the end of this year (2021).

According to the Hyundai plan, the factory will be up and running by the end of 2021, and it will begin operations by producing combustion engine models, with EV production starting in 2022. The plant will have an initial production capacity of 150,000 units a year, but this will eventually be increased to 250,000 units a year when investment plans are completed.

Hyundai is also reported to move its Asia central distribution to Indonesia, especially after it built partnership with another automaker KIA.

Though recently Hyundai’s contribution to IPCC still lower, but Arif is so optimistic with its future contribution in view of this automaker move to expand production in Indonesia and make Jakarta as central of distribution.

“We have a very good cooperation with Hyundai. Their move to expand production in Indonesia and make Jakarta as central of distribution will be our future potential market. We have started to handle their import and hopefully will soon handle their export,” said Arif.

Among the automakers, Toyota Group still contributes the highest volume to IPCC, reaching more than 60% of the total.

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