Bukaka Teknik Utima (BUKK) Optimistic to Achieve Positive Performance This Year

LISTED COMPANY - JAKARTA. PT Bukaka Teknik Utama Tbk (BUKK) is confident that the company's performance will continue to grow this year, in line with the ongoing development of several infrastructure projects under the National Strategic Project (PSN).

CEO Irsal Kamarudin stated that the company's main business activities in the construction and manufacturing sectors seem unlikely to be significantly impacted by various dynamics throughout 2023.

“The company remains optimistic that the construction projects prioritized by the Government, including the continuation of connectivity and basic infrastructure projects under the National Strategic Project (PSN) in the reporting year and in the coming years, will continue to provide opportunities for the company,” he revealed in BUKK's annual report quoted on Friday (26/04).

In this regard, he quoted The Organization for Economic Co-operation and Development (OECD) estimating that the global economy 2024 will grow by 2.9% in 2024 and slightly increase to 3.0% in 2025, with different growth realizations across regions.

This figure aligns with the OECD's previous projection in November 2023. Meanwhile, the IMF in its World Economic Outlook (WEO) release, in January 2024, predicted that the global economy in 2023 will grow by 3.1% (YoY), in 2024 will remain at 3.1%, and only in 2025 will slightly increase to 3.2%.

Global inflation rate will decrease to 6.8% in 2023 from 8.7% in 2022, and continue to decrease to 5.8% in 2024 and 4.4% in 2025. Global interest rates will decrease following the rate of inflation decline.

On the other hand, the Monetary Policy Review released by Bank Indonesia, explains that Indonesia's domestic economic growth remains good. Domestic demand remains resilient and influenced by the purchasing power of the community and the confidence of economic actors remains intact.

This development is reflected in various indicators in November 2023 and the latest Bank Indonesia survey results, such as consumer confidence, retail sales, and the Manufacturing Purchasing Managers’ Index (PMI) which remain in the expansion area.

“The realization of infrastructure projects under the PSN will be able to drive domestic consumption growth to remain strong. Various business fields such as the Wholesale and Retail Trade sector, Processing Industry, and Transportation and Warehousing are expected to continue to grow strongly,” he revealed.

“With these developments, the national economy in 2023 grew by 5.05% with inflation successfully maintained at around 2.61%. For 2024, the national economy is expected to grow higher, at around 5.20%, with inflation still maintained at around 3.0% +1,” he concluded.