The weather is uncertain, Tirta Mahakam reviews the sales goal this year

KONTAN.CO.ID – JAKARTA. PT Tirta Mahakam Tbk Resources (TIRT), one of the companies active in the production of wood and timber, continues to review the company's sales goal this year.

Senior Manager Accounting and Finance PT Resources Tirta Mahakam Tbk Firman G Munthe said that sales in the first quarter do indeed improve, but the company is still reviewing the performance at second quarter because there is a possibility of decline. Therefore, "We are still scrutinizing the performance of in 2018. We are a little worried about the weather this year," he said Thursday (28/6) .

The decisive factor in the performance of the integrated timber industry is that bad weather over time has greatly affected the availability of raw materials as well as an increase in raw material costs.

This significant increase in raw material costs erodes the profits of Tirta Mahakam, In the first quarter of 2012, Tirta Mahakam's profit fell by 76.6% to Rp 1.16 billion compared to the same period last year. last year, while its sales grew by 42%, from 185.4 billion to 263.2 billion Rp.

Firman, due to climatic factor, the cost of raw materials in the first quarter of this year has Significantly increased "This is because the supply of our concession, even afilisasi has also experienced constraints providing raw materials for us a third," he added.

To overcome the problem of availability of raw materials due to the influence of weather conditions, the company cooperates with third parties. This is also done to anticipate when affiliate Tirta Mahakam faces obstacles to supply raw materials.

"However, what we have seen so far, because of the relatively similar weather conditions in Kalimantan, the impact of this cooperation has not been significantly felt.We hope in the third quarter relative improvement, "said Firman.

This year, the company has put in place the same strategy as last year. Tirta Mahakam will seek to satisfy the raw materials of logs on a continuous basis, increasing the production of plywood which gives high profits, stopping production activities and products that do not contribute margin ce which is great for the company.

Tirta Mahakam will also focus on product and market diversification. This year, Tirta Mahakam has targeted new markets, namely India, Taiwan, Europe and Japan.

This year, the company has allocated a capital expenditure of 1 million US dollars to general maintenance. "This year there is no new addition, but we are focusing on existing management or facilities," Firman said.

Reporter: Lidya Yuniartha
Writer: Herlina Kartika

AGRIBUSINESS