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CORPORATE STRATEGIC - JAKARTA. PT Multi Makmur Lemindo Tbk (PIPA) is targeting a revenue of IDR 50 billion this year. This pipe manufacturer will take advantage of the pipe demand trend from both retail and government and non-government projects.
Multi Makmur Lemindo's CEO, Junaedi, said that the pipe business prospects for this year are still not visible due to the unresolved political situation or lack of certainty.
"This year, the intention is to increase revenue to IDR 50 billion to stabilize like before Covid, especially since we have new products as one of the drivers," Junaedi told Kontan, Sunday (25/2).
To achieve this target, PIPA has strategies including operating various new machines for product diversification to support construction and increase turnover.
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Furthermore, Junaedi stated that the pipe demand trend this year is more dominated by retail and non-government projects.
In addition, the issuer, which is officially listed on the Indonesia Stock Exchange in April 2023, will take advantage of the potential Presidential Instruction (Inpres) policy on drinking water and sanitation that will be issued this February.
PIPA, as an issuer, will always find ways to utilize this business potential by cooperating and developing modern products to create quality and technologically capable products.
"What needs to be considered about this latest Inpres drinking water policy is the water quality (ensure that the water provided through the piping system meets the water quality standards set by the health authority)," said Juanedi.
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According to him, the government must tender pipe projects and other supporting materials for the implementation of this Inpres not based on the cheapest tender, but must be the best for the creation of easily accessible and quality drinking water.
"Implement a monitoring and periodic testing system to continuously monitor and ensure water quality," he concluded.
PIPA has not yet released its latest financial report. In the first semester of 2023, PIPA's net profit was IDR 582.64 million or down 36.86% compared to the same period in the previous year of IDR 922.80 million.
This profit decline is the impact of revenue that also plummeted from IDR 22.36 billion in the first semester of 2022 to IDR 16.01 billion or equivalent to 28.37% yoy. During that period, there was also a decrease in cost of goods sold by 34.28% yoy from IDR 16.65 billion to IDR 10.94 billion.
