Dear Valued Shareholders,
First of all, let me represent all management and employee of the Company to express our utmost gratitude to the Almighty God, for He has blessed our works so we can pass 2019.
2019 was not an easy year for the Company. Even though there was positive revenue earned by the Company, however the revenue was still under that were targeted by the Management on early 2019.
On 2019 the Company has changed its name from PT Pelayaran Tempuran Emas Tbk to be PT TEMAS Tbk. The purpose of this change is in order to form public awareness related to business activities conducted by the Company and its subsidiary company.
Ever since the Company performs the operational cooperation with Mentari Line on 18 March 2019, the amount ports that are served by the Company increase significantly to be 82 ports throughout Indonesia. The additional of these ports as realization of National Network Strategy carried out by the Company.
The realization of Capital Expenditure performed on 2018 is on 2019. 10 unit of Heavy Equipment consist of 4 units of Container Crane and 6 units of Rubber-Tyred Gantry Crane were delivered on 4th quarter of 2019. These equipments will increase performance productivity loading and discharging at port.
The Company consistently participates in Sea Toll program initiated by the Government. During 2019 the Company participates on one route of Sea Toll, which is T-11 with route Surabaya-Fakfak-Kaimana-Timika-Agats-Boven Digul.
Challenges and Obstacles
Even though the condition of competition in Container Shipping Industry is tight, the Company was able to record positive performance, although it was still below what is targeted. Despite there is increase of average freight rate 9% , bunker cost that was increased 1% become one factor that eroded Company’s revenue. Down time of the fleet was also become another challenge to the Company due to there was several repair carried out to the vessels. This cause the availability of the fleet cannot be maximized.
Board of Director sees that business prospect in container carrier shipping industry is still promising. Opening of some pioneer ports reflects there are some potential cargo that can be working on. By massive infrastructure development in urban area carried out by the Government will accelerate economic wheel, because there will be new industrial area emerge. Indonesia economic growth that shows positive trends indicates purchase power of society is increase. It becomes an opportunity because it will impact the volume of container carrier that is used to distribute goods to the society.
Implementation of GCG
Board of Directors evaluates that implementation of GCG has run in accordance with direction of Board of Commissioners. GCG Principles has been implemented by GCG organs according to their function. Annual General Meeting of Shareholders was well executed and resulting some resolution and attended by Shareholders and all Board of Commissioners and Board of Directors. Board of Commissioners, assisted by Audit Committee has carried out supervisory function properly. And Corporate Secretary also has carried out its function and duty to facilitate communication between the Company and Stakeholder, also monitoring capital market in order to give inputs to Directors related to compliance to prevailing rules and regulations.
Changes in Composition of Board of Directors
During 2019 there was not any change to composition of Board of Director.
As closing, Board of Directors would like to express our utmost gratitude to all stakeholder, Directorate of Sea Transportation, Pelindo, INSA, Classification Society, Customers and Suppliers for their support and good cooperation so far. Our high esteem is also provided to all Employees, Crews and the Big Family of Temasian for the contribution and hard work through this time. May God the Almighty always bless each of our efforts and works.