Sritex Gross Sales in 2019 Up by 16.16 Percent
TEMPO.CO, BUSINESS INFO – The integrated textile company PT Sri Rejeki Isman Tbk (Sritex) on its 53rd birthday scored a strong performance amid the uncertain global economic situation due to trade war between US and China. In Semester I 2019, the company’s gross sales increased by 16.16 percent compared to Semester I in 2018. The increase was above the industry average. This strong sales was supported by the dominance of yarn sales which contributed 40.1 percent of total sales up to Semester I 2019.
The company’s net income also increased 12.29 percent in the first six months of this year, to US $ 63.25 million. This is supported by the added value that the company continues to pursue in order to improve net overall margin . Interestingly, the contribution of sales to the United States and Latin America also increased by 3.2 times until the middle of this year or contributed 13.6 percent of total export sales valued at US $ 51.35 million from US $ 15.98 million in the year period previous. This shows that the company is quite flexible in taking opportunities that exist in the global market.
Textile and apparel is the highest growing manufacturing sector in the second quarter of 2019 at 20.71 percent. The textile industry is a priority industry in many developing countries because it absorbs a lot of human labor and directly affects per capita income. This is important because textiles are one of the primary needs – clothing, food, shelter, which can contribute to the national economy.
The proper protection is to apply safeguard to imported goods that enter massively so that it damages many domestic producers. Second, the expansion of free trade agreements that is reciprocal or fair and balanced.
In line with the government’s plan to continue to boost exports, PT Sri Rejeki Isman Tbk is committed to continuing to expand export volumes. To continue expanding its market share, the company targets export sales to contribute in the range of 62-65 percent of total sales this year. With that, the company slogan that reads “Indonesian Works for the World” can continue to be our motivation to continue creating foreign exchange for the country.
The company also believes that the level of competitiveness of textile companies in Indonesia is not inferior to that of other countries such as Vietnam and Bangladesh. Of course, it can still be improved with the synergy between business people and the government from upstream to downstream. Indonesia currently only fills 2-3 percent of global textile needs where the national export value in 2018 is recorded at US $ 13.8 billion. Together with President Joko Widodo’s vision and mission for the next five years, we support the vision to continue to build infrastructure and develop human resources (HR) to achieve superior Indonesia. With these two efforts, it is expected that the target of increasing exports can be achieved by all the country’s manufacturing industries.