PT Indonesia Kendaraan Terminal Tbk (IDX: IPCC), a publicly listed car terminal operator, is calling for equitable treatment among vehicle terminal operators in Indonesia. This plea for fairness arises in response to perceived preferential advantages given to the emerging Patimban Port, which has positioned car loading and unloading as its primary focus.
The IKT Board of Directors conveyed this message during the company’s 2024 Public Expose, which presented its performance up to the third quarter in Jakarta on November 4.
During the event, the Board discussed various topics, including company growth, revenue, competition with Patimban Port, and future strategies. President Director Sugeng Mulyadi highlighted IKT’s significant progress since its stock market debut six years ago. “We have expanded our operations in regions such as Banjarmasin, Makassar, Surabaya, Lembar, Pare-Pare, Irian Jaya, Pontianak, and Belawan,” he stated.
When discussing competition with Patimban Port, one of national strategic projects, Sugeng expressed confidence in IKT’s resilience. “We welcome competition but seek fair play and equal treatment,” he asserted. Notably, Patimban holds a 20% market share in new car import and export cargo, significantly trailing behind IKT’s 80%.
Sugeng also emphasized IKT’s collaborations with automakers from Japan, Korea, and beyond. “Our goal is to partner with car carriers to provide comprehensive services from factory to end user,” he added.
Looking forward to 2024, Sugeng projected that IKT’s revenue would benefit from the seven terminals it operates, with Jakarta expected to make the largest contribution.
On the topic of electric vehicles, he noted a positive trend in sales growth but acknowledged challenges for 2024-2025, including overall automotive growth, the rise of electric cars, and competition from other vehicle terminals. To address these challenges, Sugeng outlined strategies such as establishing dedicated car terminals, implementing single billing, elevating terminal status, and enhancing cargo handling and stevedoring market share. He stressed the importance of improving services through digitalization, optimizing account management, standardizing operations, and expanding terminal capacity. “Our focus must be on profitability, not just expansion,” he concluded.
Significant Growth in Satellite Terminal Contributions
Sugeng announced that from January to September 2024, IPCC recorded a consolidated traffic growth of 13.5% year-on-year (YoY), totaling 90,820 units. This growth is closely linked to IPCC’s strong performance, which saw a 4% YoY increase in net profit in September 2024, reaching IDR 148.02 billion.
The third-quarter financial report submitted to the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) attributes this traffic surge to strategic management decisions, including the opening of a new satellite terminal in Balikpapan and the upcoming launch of another in Banjarmasin in October 2024.
Notably, the handling of heavy equipment and truck/bus cargo saw a remarkable 74.1% increase. “IPCC’s earnings per share rose by 4.2% YoY in the third quarter, increasing from IDR 78.06 to IDR 81.40,” stated Wing Megantoro, Director of Finance, HR, and Risk Management at IPCC.
Wing emphasized that terminal services are the primary revenue driver, especially at the Jakarta Branch. The influx of electric vehicle (EV) cargo, which began in June 2024, has been particularly strong, with brands like BYD, Wuling, Citroen, VinFast, and AION contributing to a monthly increase of 19%, totaling 15,988 units.
Despite an overall decline in motor vehicle sales this year, IPCC achieved positive results through effective management strategies, such as optimizing land use with collaborations like the Pre Delivery Center (PDC) service for vehicle storage.
Changes in business patterns within the commercial sector have also driven income optimization, thanks to robust synergy and communication between IPCC and its service users. Wing reported a net profit margin of 26.24% in the third quarter, up from 25.89% a year prior, alongside an EBITDA margin increase to 46.7%.
IPCC is focused on enhancing operational efficiency, aiming to create value for investors. The company boasts a strong financial position, free from loans, providing ample opportunity for future expansion.
Bagus Dwipoyono, Director of Operations and Engineering, highlighted the introduction of a new digital operating system, PTOS-C, developed by a Pelindo subsidiary. This system streamlines operations and addresses customer needs, reinforcing the company’s commitment to exceptional service.
Ongoing standardization of procedures and terminal transformation is critical for improving the automotive business climate, which is expected to support the national economy.
With the rise of various Chinese brands in the national EV market and new factories in Jakarta, there are optimistic projections for increased EV cargo—both exports and imports—in the coming year.
Sugeng concluded, “We are dedicated to expanding vehicle terminal management in Indonesia, particularly in central and eastern regions, enhancing connectivity and reducing logistics costs through efficient, integrated processes that consistently meet customer expectations.”