Apac Group is a widely diversified corporation. One of its core businesses is textile industry.
Apac Group is headed by Johanes Budisutrisno Kotjo. In the 1990s Johanes Kotjo as he is better known, had close partnership in business with a son of former President Soeharto, Bambang Trihatmojo who had his own big company group the Bimantara Group.
A subsidiary of the Apac Group, PT. Apac Inti Corpora, operates spinning and weaving industries. Apac Inti Corpora operates the country's largest integrated textile industry. In april, 2007 Apac Inti Corpora together with 200 other TPT companies proposed participation in the restructuring program offered by the government.
The Apac Group is made up of 20 companies, in addition to textile and garment industry, also operating in other business areas including investment holding, power plant, general trading, real estate, etc.
Textile the main core business
PT. Apac Citra Centertex
This company was established in 1987 to operate in garment industry and investment holding. In 1989 PT. Apac Citra Centertex (ACC) was listed on the Jakarta Stock Exchange selling part of its shares to the public. The majority shareholder of ACC is Growth Solution Ltd (58.77%). Other shareholders are PT. Apac Century Corp (18.76%) and investing public (22.47%). ACC is a shareholder of its subsidiary PT. Apac Inti Corpora (AIC).
Growth Solution Limited (GSL) is an investor that has taken over the debt of Apac Inti Corpora to the Indonesian Banking Restructuring Agency (BPPN) in the wake of the 1997/1998 crisis. The debt was later converted into share making Growth Solution Ltd. a majority shareholder of ACC.
In the coming years, ACC plans to gradually stop producing garments after poor performance of business in that sector in the past five years. The ACC's contribution to the total sales of the group shrank from 2.2% in 2004 to 0.13% in 2005. In 2006, ACC and its subsidiaries had 12,621 workers.
In 2006, ACC already invested up to US$ 30 million to restructure the machines of the textile factory of its subsidiary AIC. The restructuring plan will continue by phases in the next five years. The investment fund will come as loans. ACC uses machines from Tomen Corp and Mitsubishi Corp from Japan.
PT. Apac Inti Corpora
The company established in Jakarta in 1990. The shareholders of the company include Robby Tjahjadi, Tjandra Sari and Handoko Tjandra.
AIC is a domestic investment (PMDN) company operating an integrated textile industry. Its factories are located over a 247 hectare plot of land in Semarang, Central Java. Its production facilities include ring spindles 380,000 units, open end rotor, twisting spindles (two for one twister) and shuttleless weaving machine.
AIC started commercial operation in 1992 with a production capacity of 26,300 bales of yarn and 43,680,000 meters of finished fabrics per year. The initial investment of the company was Rp 172.6 billion.
In 1995, the name of the company was changed with PT. Apac Inti Corpora.(AIC) when 94.12% of its shares were taken over by PT. Apac Century Corporation and the rest for cooperatives. Its authorized capital was Rp 800,000 million.
At the same time PT. Kanindo Success Textile was merged into AIC. After the merger, AIC become one of he largest integrated textile companies in Asia. AIC operates yarn spinning and textile weaving industries in the same location in Semarang. The company use the most sophisticated machines for its weaving and spinning plants.
In the following year, AIC increased its production capacity to 108,000 bales of yarn and 182.4 million meters of finished fabrics per year. Its total investment increased to Rp 435.5 billion.
In 1994, AIC was licensed by BKPM to increase its investment to Rp 471.5 billion to restructure its machines without expanding its production capacity. After expansion several times, now AIC operates 16 units of factory with a capacity to produce 85,000 tons of yarn, 80 million meters of greige fabric, 60 million yard of denim fabrics and 5 million meters of finished fabric per year.
The brand for the textile products of AIC is "APACINTI" including yarn, greige fabric, finished fabric and denim. The products of APACINTI have won the certificates of KEMA, ISO 9001 : 2000 for quality and consumers satisfaction.
Around 70% of AIC production is for export. Exports have been made to 70 countries. Its total sales annually average US$ 238 million.
AIC has a training center named 'GRIPAC' (Griya Pelatihan APAC) located in its factory complex. The training center is an independent business unit.
The 1997/1998 served a big blow to the company. Its management was put under control of BPPN for non performing debt to bank. In 2005, the company succeeded in restructuring its debt.
In 2007, AIC sets aside US$ 25 million for its program of revitalization, modernization and replacing of machines. The fund is expected to come as loan from local banks. Replacement of machines will be made by phases. In the first phase replacement of machines will cost US$ 8 million, the second US$ 7 million, and the third US$ 8 million and the last phase to cost US$ 2 million. Most of its 16 factories use old machines more than 20 years, therefore, they are no longer efficient. The machines will be reconditioned and then sold.
The restructuring of the machine is expected to increase its production capacity by 10%. AIC and 200 other TPT companies have sought participation in the government's restructuring program launched earlier this year. Currently the government is selecting companies deserving participation in the program under which the government will provide subsidized credit for machine restructuring.
PT. Inti Sukses Garmindo
PT. Inti Sukses Garmindo (ISG) operates in garment industry in Semarang. Its factory is located over a 25,000 m2 plot of land, equipped with 964 units of modern garment machines.
Currently ISG has the capacity to produce 80,000 pcs of woven tops, 60,000 pcs of woven bottoms, 100,000 pcs of dress, 60,000 pcs of skirts, 200,000 pcs of denim pants a month. Its total production capacity is, therefore, 6 million pieces a year. The company has exported its entire production. Its main export destinations are the United States and the European Union.
Steam powered electric plant (PLTU)
PT. Vitadaya Harapan
Apac Group through its subsidiary PT. Vitadaya Harapan also has business in power generating industry operating a steam powered electric plant. Vitadaya, established in 1996, has a power plant with a capacity of 50 MW. It is 99% owned by AIC. The power plant is used to supply power to the factories of AIC in Semarang.
AIC plans to gradually stop using oil fuel to be replaced with coal. Energy cost makes up 10%-11% of its production cost. By conversion of oil with coal the company will save 30%-50% of oil fuel cost.
The Apac Group is a large TPT industry operating an integrated industry with factories located in the same complex in Semarang. Over a 247 hectare plot of land. Currently the Apac Group operates spinning, weaving, denim fabric and garment factories providing jobs for 12,621 workers.
Although it was badly jolted by the 1997/1998 crisis, one of its subsidiaries AIC has succeeded in restructuring its debt to BPPN. Its debt was taken over by a foreign investor Growth Solution Limited, which is now the majority shareholder of ACC, which owns 99% of AIC.
AIC President Benny Sutrisno still is active as the general chairman of the Indonesian Textile Association (API). The Apac Groupis export oriented, exporting 70% of its production with the rest disposed of on the domestic market. Its annual sales average US$ 238 million. AIC is expected to be able to increase its productivity especially in spinning and weaving industries if it takes part in the government's program to restructure the country's textile industry.
List of: Apac Group Members
1. PT. Apac Century Corporation (Investment Holding)
2. PT. Apac Citra Centertex (Investment holding and Garment Industry)
3. PT. Apac Inti Corpora (Spinning and Weaving Industry)
4. PT. Vitadaya Harapan (Power Plant)
5. PT. Bhuwanatala Indah Permai (Textile Industry)
6. PT. Asri Kencana Gemilang
7. PT. Pura Golden Lion (General Trading)
8. PT. Inti Sukse Garmindo (Garment Industry)
9. PT. Apac Pavindo Lestari (Office Building Management)
10. PT. Daya mekat Texindo (Textile Industry)
11. PT. Sarana Tirta Ungaran
12. PT. Ekadharma Garmentama (Garment Industry)
13. PT. Krida Bumi Raya (Investment Holding)
14. PT. Inti Perkasa Wira Sentosa (Investment Holding)
Source: Financial report of Apac Citra Centertex
APAC GROUP Parent company: PT. APAC CITRA CENTERTEX Tbk Address: Graha BIP, 6th & 10th Floor Jl. Gatot Subroto Kav. 23 Jakarta 14140 Phone(s): (021) 5258180, 5255222 Fax.: (021) 5258400 Number of Companies: 20 Chief Commissioner: Johannes Budisutrisno Kotjo Commissioners: Ivo Sebastian Wongkaren Djoko Leksono Sugiarto Independent Commissioners: Sintong Panjaitan Soerjadi President Director: Benny Sutrisno Directors: Anas Bahfen Gunawan Setiono Loe Tjen Wie Source: Financial report of Apac Citra Centertex Financial Highlights PT. Apac Citra Centertex Tbk (in Rp million) 2005 2006 Description (31st Dec) (30th Sep) ASSETS a. Current Assets 588,421 575,558 b. Non Current Assets 1,811,352 1,750,362 Total Assets 2,399,773 2,325,920 LIABILITIES a. Current Liabilities 864,680 874,239 b. Non Current Liability 1,400,390 1,251,106 c. Equity 134,703 200,575 Total Liabilities + Equity REVENUES a. Total Revenue 2,303,027 1,623,108 b. Net Profit -94,912 5,952 Source: Financial report of Apac Citra Centertex
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|Title Annotation:||COMPANY PROFILE|
|Publication:||Indonesian Commercial Newsletter|
|Date:||Aug 1, 2007|
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