Performance recovery

IPCC is the largest terminal operator for Pure Car Carrier (PCC) and Roro (Roll On Roll Off) vessels, handling most vehicle export/import trade and 26% of domestic sales. Its main services consist of: stevedoring, cargodoring, receiving and delivery – also “value added services” that includes a vehicle and equipment processing center, road freight service and port stock. Company has the capacity to handle 907k vehicles p.a., on a total area of 31 ha.

Consolidating more ports to drive growth

IPCC operates 3 main ports, located in Tanjung Priok, Belawan, and Makassar. It has also operated Pontianak and Balikpapan branches since Oct-23. By continuously expanding its terminal operations, IPCC benefits from IKN development, taking on heavy equipment (HE) shipments. Company targets operation of a new Surabaya Terminal by end-2024, and its long-term expansion plan includes facilities in Lembang, Bitung and Ambon. As IPCC expands nationally with new car terminals, Company can optimize domestic shipping routes and collaborate with land distributors to expand its service.

Main terminal operator for imports / exports

The Tanjung Priok car terminal is the largest in the country, and the third-largest in Southeast Asia. Last year, IPCC handled a total of 385,680 vehicles for export, the majority to the Philippines, Mexico, Saudi Arabia and Vietnam, and facilitated the import of 87,202 vehicles, mainly from Thailand and India. Note that BYD has imported 3,480 units via IPCC in 1H24, and targets another 4,200 units to arrive in July. The current estimated cost from car factory to IPCC terminal is around IDR200k/unit, compared to IDR400k/unit at Patimban port; therefore, Tanjung Priok continues as the main choice for automobile imports/exports. However, once there is toll access to Patimban (scheduled in 2025-2026), it may pose a risk to IPCC volume and performance.

Stable performance

Adhering to a conservative business model, IPCC has a relatively stable revenue stream and cash inflow. It was thus able to consistenly pay a dividend, with an average yield of 6.4%. Looking at its attractive valuation, Company allocates IDR117bn for share buyback.

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