PT Dharma Polimetal Tbk (DRMA), a leading manufacturer of metal products in Indonesia has set its sights on expanding its revenue by 25% this year. To attain this objective, the company has announced plans to invest IDR 500 billion (US$ 33.6 million) in Capital expenditures (Capex).
Established in 1989, Dharma Polimetal is the holding company of the Dharma Group, and a subsidiary of Triputra Group. The company produces main components for motorcycles, and cars.
Expects strong demand and good projection in 2023
Irianto Santoso, the President Director of Dharma Polimetal stated that the investment will be used to improve the company’s production capabilities and expand its product portfolio. Santoso also added that the company is optimistic about the prospects of the automotive industry in Indonesia and expects to see strong demand for its products.
“The prospect of selling electric vehicles is also expected to increase, in line with the provision of incentives for both two-wheeled and four-wheeled vehicles by the government,” said Santoso.
The incentives provided by the government for electric vehicles encourage the purchase of locally sourced electric vehicle components. “This is very positive for automotive component supplier companies in Indonesia, such as Dharma Polimetal,” Santoso said.
Santoso explained that incentives for electric vehicles have raised hopes of a boom in electric vehicles. Throughout 2022, sales of electric cars amounted to 15,437 units, which is 383.46% higher compared to sales in 2021, which was only 3,193 units.
Through its subsidiary, PT Dharma Controlcable Indonesia (DCI), the company is collaborating with an electric motorcycle provider company, Rakata Motorcycle, to develop an exchange system, or electric vehicle battery swap.
The company is optimistic that in 2023, revenue is expected to increase, supported by the company’s success in acquiring PT Trimitra Chitrahasta (TCH), which is a car and motorcycle component manufacturer owned by Kuroda Group Co. Ltd from Japan. The company focuses on added value and the positive impact of its subsidiaries on the sustainability of the company’s business activities.
“TCH, which has automotive component factories in Cikarang and Cirebon, produces automotive components for customers such as Daihatsu, Honda, Suzuki, Yamaha, Hyundai, Toyota, PT TS Tech Indonesia, PKMI, KYB and Hitachi,” said Santoso.
With bright prospects for the automotive business, DRMA is optimistic that demand will grow positively with a target of 20-25% in 2023. “We are optimistic that in 2023 the automotive business will return to growth considering that the economy is expected to grow better than previously estimated,” concluded Santoso.
