Indonesia public listed freight forwarding and logistics company PT Dewata Freightinternational Tbk (DFI Logistics) is doing transformation of business focus, from freight forwarding services to integrated logistics.
To realize this transformation vision, the corporate will expand business units to halal hub, cold chain, warehouse, and bonded logistics center (PLB).
For the expansion of those business units, this company will invest more than Rp 250 billion, sourced from internal cash, investor partnership, and right issue, according to DFI Logistics top executives.
DFI Logistics President Director Nofrisel explained that the corporate had been taking focus on freight forwarding and cargo project services. But, in the last year, the corporate had started to do business transformation to integrated logistics.
“So, this is not just a response to the existing business situation due to the effect of pandemic covid-19 outbreak. This is our business vision and mission that we have planned it before,” Nofrisel explained in responding question if this plan is an exit strategy from this situation (covid-19 outbreak).
This transformation, he said to press after shareholders meeting (RUPS) for 2019 financial report on Wednesday, August 5, remained an agenda for the future of DFI Logistics. “Hopefully, this will drive DFI to be a leading local logistics player,” he said.
DFI targeted to start running this business transformation programs next month (September or October). “We have completed some FS (feasibility studies),” he said.
Nofrisel named some locations for those programs, including Jabodetabek for halal hub, Surabaya and Jabodetabek for cold chain (cold storage), and Medan (North Sumatera) for e-Commerce-based PLB that would focus on air cargo services.
Quietly steady
Nofrisel, DFI Logistics President Director
Though not achieving the target, but in general, the DFI Logistics performance in 2019 was quietly steady, said Nofrisel. In 2019, this company booked revenue and net income of Rp 144,400,863,183 and Rp 977,683,483, respectively.
Nofrisel named some factors, including the national political situation due to the event of general election that impacted a slow business in 2019. “Most of our works (project cargo) are orders of state-owned companies. No, doubt this political event little bit disturbed the works. This impacted our performance,” he said.
“But, overall, it was steady, though lower than expected,” he said further.
Along the budget year of 2019, the corporate had taken some key steps to maintain the corporate income increase. Last year DFI did acquisition of PT Samulos Harmoni Energi Perkasa (SHEP). This is to optimize the service on logistics mining.
Now, DFI has three subsidiary companies, including SHEP, PT Dewata Makmur Bersama, and ACM Logistics, a new subsidiary company that will focus on retail logistics.
“These subsidiaries have provided significant contribution to the corporate revenue,” he said, adding that they (subsidiaries) would continue to provide positive contribution to the corporate in the future in view of their contracts.
The subsidiary PT Dewata Makmur Bersama, for example, has just got a new contract worth USD 1.9 million for cargo supply to PLTG 30MW and SHEP will handle mining logistics for Andesit Contractor Project Ds. Tanjung Agung, Muaraenim, South Sumatera.
The corporate has also signed a contract of Rp 75 billion and will soon sign another contracts worth Rp 360 billion and USD 860 thousands.
“We will continue to provide a more efficient, innovative, transparent, and qualified services,” said Nofrisel.
Echoing the view, Yukki N. Hanafi, DFI Logistics President Commissioner and Chairman of Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) said that efficiency will make the logistics business be more competitive.
He appreciates any strategies and steps taken by the DFI Direction Boards to make the business more efficient.
Statute Amendment
Yukki Nugrahawan Hanafi, DFI Logistics President Commissioner
In addition for the approval of this financial statement, the RUPS for the DFI Logistics Report 2019, also settled other agenda of: accepting the yearly reports of the direction board, the yearly report of commissioner board, settlement of allocation of 2019 net profit, appointment of public auditor for 2020, settlement of renumeration for both direction and commissioner boards for 2020.
DFI Logistics President Commissioner Yukki Nugrahawan Hanafi explained that this yearly RUPS was done in parallel with the extraordinary shareholder meeting (RUPS LB).
The agenda of the RUPS LB, Yukki said, included, first, amendment of the corporate statute (AD), including the aspects of vision, mission, and the corporate business entities.
Second, approving the amendment of the corporate AD article 17 on the RUPS that will follow the regulation of state financial authority (OJK) 15/pojk.04/2020 on the RUPS Planning and Realization of public listed companies (“POJK 15/2020”).
And, third, authority provision to direction boards to execute those RUPS decisions (point 1 and 2) to legalize the AD amendment.