Gunung Raja Paksi (GGRP) Optimistic Export Market Will Remain Stable in 2024

February 19, 2024, 10.50 PM  | Reporter: Vina Elvira
Gunung Raja Paksi (GGRP) Optimistic Export Market Will Remain Stable in 2024

ILUSTRASI. Pabrik baja?PT Gunung Raja Paksi Tbk (GGRP).

CORPORATE STRATEGIC - JAKARTA. PT Gunung Raja Paksi Tbk (GGRP) remains optimistic that the company's export market will remain stable in 2024. This is considering the good stability of GGRP's export performance over the past four years. 

GGRP President Director Fedaus stated that they are optimistic about this year's export performance being stable, as the market they have reached covers more than 30 countries, including Australia, New Zealand, and the United States. 

“We are committed to continuing to develop our market reach, and in 2024, we hope to enter the European market,” Fedaus revealed to some time ago.



However, it cannot be denied that the steel and iron industry in Indonesia is still facing many challenges. 

Referring to data from the Central Statistics Agency (BPS), iron and steel exports fell 6.82% to US$ 2.28 billion in November 2023, from the export value of US$ 2.45 billion in October 2023. Meanwhile, on an annual basis, it fell 2.19% from US$ 2.33 billion in November 2022. 

Fedaus explained that in 2024, the national steel industry needs to pay attention to several factors that could potentially cause a decrease in iron and steel exports. One of them is the world's steel consumption dependence on the growth of China's steel consumption, which now accounts for more than 50% of total global steel consumption. 

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In addition, volatility and uncertainty related to regional conflicts, such as those in Russia and Ukraine, Israel and Palestine, and other areas, also need attention.

Not only that, international consumer awareness of products with low carbon emissions also poses a challenge for the prospects of iron and steel exports in the future. 

“In this context, not all national steel industries can meet these standards, which can be a barrier to export efforts in the future,” he added. 

Based on these, GGRP Management believes there is a need for collaboration between various stakeholders, including the government, to increase support for initiatives and investments in environmentally friendly technology in the steel sector. 

These steps include tax incentives for increasing energy efficiency and reducing carbon emissions, as well as support for research and development of green technology that helps the national steel industry face these challenges and strengthen its position in the global market.

Overall, this year GGRP is targeting financial performance growth compared to 2023. Unfortunately, Fedaus did not specify the growth figure targeted in 2024. 

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“We also acknowledge the risk from geopolitical conditions and the 2024 election agenda that can affect our performance. We will continue to monitor factors such as supply and demand, prices, economic conditions, and other factors that can affect GGRP's steel sales forecast until the end of 2024,” he concluded. 

An addition, as of the third quarter of 2023, GGRP recorded net sales of US$ 537.4 million or a decrease of 34.6% from the same period previously around US$ 723.2 million. Meanwhile, the gross profit pocketed was US$ 59.7 million. 

The company recorded sales expenses of US$ 5.5 million, general and administrative expenses of US$ 18.8 million, and financial expenses or costs of US$ 9.6 million. So the net profit recorded was US$ 22.06 million in the third quarter of 2023. 

Editor: Syamsul Azhar

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