Dear Valued Shareholders,
In general, during 2015, Indonesia Economy has not yet recovered due to the weakening exchange rate of Rupiah which was at Rp 13.795 per US Dollar by the end of December 2015 or in other words, Rupiah declines by 10,89% compared to the previous year which was closed at the level of Rp 12.440 per US Dollar. Indonesia Economy grew relatively slight at the level of 4.8%, meanwhile the overall inflation rate is below 3%.
This fact also influenced the condition of national shipping industry throughout the year of 2015. Although, Indonesian Government emphasizes more on maritime sector, yet it was not sufficient enough to further improve maritime industry. However, we should be beyond grateful for the TEMAS Line successfully recorded a positive growth in sales and cost efficiency.
In terms of financial achievement, the Company gained revenue of Rp1,621 billion, or increased by 6,52% compared to revenue of Rp1.522 billion in 2014. Net profit also increased by 55.76%, from Rp203.6 billion in 2014 to become Rp317.2 billion in 2015. Total assets acquired to Rp1.627 billion in 2014, now amounted to Rp1.782 billion or increased by 9.53%. The Company s stock performance during 2015 also showed a quite satisfying movement with an opening price of Rp2.220 and then increasing to its highest at Rp2.285 although finally decreasing to be Rp1.950 as the closing price in the end of 2015 market.
The Board of Directors has mandated various strategic measures to enhance operational performance and capital effectiveness through previous well-planned business activities. In 2015, we have signed a Memorandum of Understanding with PT Pelabuhan Tanjung Priok, PT Pelindo s Subsidiary, regarding Cooperation in Stevedoring Activities.
TEMAS Line has also opened new route of Surabaya-Palu as the 20th route operating since May 2015 at Pantoloan Port, Palu. An initial activity at this new route was marked by operating KM Kanal Mas with the capacity of 8,100 DWT and 120-meter length.
Also in 2015, the Company has purchased 6 new building ships that will gradually be delivered since first quarter of 2016; and 1 used ship that has been delivered on January 18, 2016. The purchase of new ships is part of TEMAS Line s business strategy in line with the development of new routes, as well as the anticipation to replace our inefficient ships.
TEMAS Line leads the way in providing its full support and continuous commitment to be side by side with the Government s program in realizing the Nation of Maritime Fulcrum by building sea toll, aiming at reducing disparity between western and eastern regions of Indonesia.
Improvement in TEMAS Line is applied in the field of information technology through implementation of "Accurate" system serving to facilitate monitoring the position of containers being operated. Meanwhile, the I-FAST -based recording system in accounting and finance is also applied to manage more integrated and efficient financial reports. In addition to develop the Company s performance, various business activities in TEMAS Line are intended to enhance productivity and services that are in line with Government programs in realizing Indonesia as the Nation of Maritime Axis through sea toll. This is realized through TEMAS Line s operational activities covering various integrated solutions that guarantee "safe and on-time shipping delivery" supported by innovative, competitive and reliable services in Indonesia.
In continuing the last 2014 achievement, currently the Company has implemented and improved various business units focused on activities of shipping, storehousing and stevedoring services. And in order to conduct optimum operation for all business activities, the support of Company s reliable and professional Human Resources is a major factor that becomes our priority in developing productive and effective performance of TEMAS Line thoroughly.
To face the era of Asean Economic Community ahead, the Company has implemented several strategies for the improvement of quality Human Resources through organizing training and development for employees competence at regular intervals, either in-house or hosted by related institutions. Manpower quality is also enhanced through coaching, gathering, and mentoring, which are organized by the HR Division. Each division has KPI (Key Performance Indicator) as the standard performance measurement and task results of related division. For TEMAS Line, reliable, loyal, competent and dedicated manpower is the Company s human capital in improving performance and competitiveness for the acceleration of Company s Vision-Mission achievement.
The implementation of Good Corporate Governance (GCG) has become work culture for the Company. In running the shipping activities as the Company s business focus, we have implemented the principles of GCG values through business management system based on transparency, responsibility, professionalism, also fairness and equality of rights for all shareholders or stakeholders.
This can be seen through the implementation of the following principles:
The Company has clear business purpose and strategy, based on assessment and evaluation of an external auditor.
Every organ of the Company (GMS, Board of Commissioners, Board of Directors) has clear and assertive duties.
The Company has complied well with timely taxation obligations and prevailing legislations.
In making decisions, every organ of the Company has always tried to avoid conflicts of interest without ignoring the rights, obligations, duties, authority and responsibilities of each organ.
The Company treats each employee fairly and free from influence of difference in tribe, religion, race and gender and others, which have nothing to do with performance.
Related to GCG implementation, the Company has begun applying ERP "TAS" system and "I-FAST" financial system as an effort to improve more accurate data logging and facilitate consolidation in finance, analysis and control over recording of each transaction.
As a provider of shipping goods in container through marine line, TEMAS Line has social responsibility to maintain good relation with all stakeholders, especially the community and environment around the Company area. For 2015, the Company s CSR program has been realized by providing donation in education for the children of late former sailors. In addition, the Company has also distributed reading books (Kisah Peti Kemas Membangun Indonesia) to students of elementary schools near to the Company s Head Office and branches.
In order to maintain environmental sustainability, the Company has rejuvenated its ships. Inefficient ships in terms of fuel consumption were sold and replaced by ships with economic fuel consumption. In addition, to operate ships safely and prevent pollution, we have the certification of ISM Code regarding Safety Management System.
Overall, the activity of social and environmental responsibility conducted by TEMAS Line includes educational program, social and community development program, as well as natural disaster and social donation program.
Looking ahead, business prospect of TEMAS Line remains very bright along with the Government initiative in making Indonesia as one of the world s maritime Axis. On the other hand, the development of small industries is increasing in other areas outside Java. Balanced progress in the country will certainly create wider space for shipping industry, especially for high potential of bulk shipping cargo that can be converted into more efficient and secured container.
To close our report, the Board of Directors would like to extend deepest gratitude to the Board of Commissioners upon constructive suggestion, input and advice. We also convey our appreciation to all employees, shareholders, customers and business partners for well support, trust, and cooperation during the year, so that TEMAS Line can continue growing and improving to become one of the leading national shipping companies today.