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29 January 2021


SEO Article

AKRA Encourages JIIPE Industrial Land Contribution


PT AKR Corporindo Tbk. has a number of strategies to maintain performance growth in the industrial area amid the prospect of a slowdown in the domestic and global economy due to the Covid-19 pandemic.

The company will continue to maintain the balance sheet at a healthy level and maintain gearing ratios at a low level or below 30 percent, said AKR Corporindo Suresh Vembu's director.

The company will encourage revenue from new business contributions, one of which is from the Java Integrated Industrial and Port Estate (JIIPE) industrial area to maintain its performance. The company has a balance sheet which consists mainly of earning assets funded by equity.

In addition, AKRA will also maintain a net open position in the purchase of oil reserves amid a drop and high volatility in world crude oil prices, thereby reducing the risk of loss from fluctuations in oil prices. The company avoids speculative action by buying lots of supplies when prices are low and selling them more when prices are high, so that the risk of price uncertainty can also be limited.

Suresh also said that his party would ensure business continuity during the crisis by carrying out its main operations, namely as a company supplying basic chemicals and fuel oil (BBM) which is an important part of many industries.

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