PT Astra International Tbk posted a net income of IDR143.69 trillion in the first half of 2022, a 34% increase from the same period last year. The multinational conglomeration also absorbed IDR8 trillion of the allocated IDR20 trillion capital expenditure (Capex) in H1 2022 for business expansion.
Astra was founded in 1957 and since then has become one of Southeast Asia’s largest automotive group with 240 subsidiaries. The company assembles car brands including Toyota, Daihatsu, Isuzu, Peugeot and BMW, UD Trucks for commercial vehicles and Honda for motorcycles. Astra also expands its business in other industries such as financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology and property.
Astra said it achieved a net profit of IDR18.17 trillion, or a 105.77% increase from the same period last year of IDR8.83 trillion. The company’s automotive division net profit increased by 29% to IDR4.3 trillion, reflecting higher sales volume. Astra’s car sales rose 23% to 259,000 units, with market share increasing from 53% to 54%, kontan.co.id reported. In the first half of 2022, Astra launched 18 new models and 10 revamped model.
The company’s Capex allocation of IDR20 trillion for 2022 was more than doubled from last year’s of IDR9 trillion. Prior to the COVID-19 pandemic, Astra’s Capex reached IDR21 trillion in 2019, indicating that the company has recovered from the pandemic aftermath.
Astra Head of Corporate Investor Relations Tira Ardianti said the group has used around IDR7.6 trillion of Capex to procure heavy equipment, renovations, automotive dealerships development, digital investments and others. She added that the bulk of the remaining Capex would be used for other spending as well as for future investment plans.
“We mainly use it for the procurement of PT Pamapersada Nusantara (Pama) heavy equipment, renovations, development of automotive dealerships, digital investments and others,” Ardianti said on August 1, 2022.
In addition, there are at least five business sectors that Astra plans to develop, namely technology, financial services, health, mobility and new and renewable energy (NRE or EBT in Indonesian language).
Astra’s ability to recover from the impact of COVID-19 shows the recovery of the automotive industry. However, the increasing fuel prices might indirectly hinders the recovery of the industry.
