JAKARTA: Publicly listed tire producer PT Gajah Tunggal has released strong figures for the first quarter and expressed optimism on future sales amid the government’s infrastructure push and economic policies to support the automotive industry.
The company’s quarterly report shows that its revenue rose to Rp 3.4 trillion ( US$255.6 million ) in the January to March period of this year, up 13 percent from Rp 3 trillion recorded in the same period last year.
Gajah Tunggal president director Christopher Chan said the increase marked a good start for the company after it had seen a 1.3 percent drop in annual sales last year, attributed to the economic slowdown.
“We hope to see this kind of growth sustained for the next quarters throughout this year,” he said, adding however, that the firm remained cautious on the possible slow recovery of commodity prices that would affect the overall economy.
While also hoping on the local economy, Gajah Tunggal has set its sights on the US market, where recently imposed high tariffs on Chinese tires opened up opportunities for Indonesian producers.
Gajah Tunggal exports 43 percent of its products to six continents. This year, it targets to increase the export share with the aim of earning more than 50 percent of its revenue abroad.
