July 07, 2025

AKRA Transforms from Land Seller to Ecosystem Builder

Market Commentary

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In the past, AKRA’s story often began and ended with one thing: land sales. JIIPE, its flagship integrated industrial estate and deep-sea port, was always the center of attention. Every quarter, investors waited for the same update. Did they manage to sell land?

But this year, AKRA is telling a different story.

In the first quarter of 2025, the company reported zero land sales, although 20 hectares had already been handed over to Golden Elephant in early April, keeping it in line with the company's expectations going forward. Still, it managed to deliver a solid net profit of Rp565 billion in the first quarter. That performance did not come out of nowhere. Over time, AKRA has quietly reshaped its business model. Utilities, which were once considered a supporting element, are now becoming a true growth engine. Revenue from electricity, water, and waste treatment rose by 497% yoy in 1Q2025 as some of anchor tenants have not reached full utilization, showing that recurring income is no longer a small detail. It is starting to shape the bottom line.

The joint venture with BP in retail fuel has also shown strong performance. Volume jumped 40 percent compared to last year, and although margins remained flat, the growing scale is starting to make an impact. Meanwhile, the company’s chemical trading segment is targeting 15 to 20 percent volume growth this year, and early momentum is already visible. The fuel station network is expanding, with a target of 75 to 80 outlets by year-end.

Despite the current market showing little to no growth across most sectors, including weaker momentum in commodities, AKRA stands out as one of the few sizeable companies with a clear and stable growth outlook. While many peers are revising down expectations or relying on external catalysts, AKRA continues to operate with discipline and deliver consistent performance. The company’s 2025 revenue and profit guidance remains intact, and based on its historical track record, it has repeatedly proven its ability to execute even in slower cycles. In an environment where predictability is scarce, AKRA offers a rare combination of scale, visibility, and execution stability, making it a compelling name to hold amid market uncertainty.

Behind that operational consistency is a balance sheet that speaks for itself. The company holds a net cash balance, maintains a 19 percent ROE, and has guided net profit to reach Rp2.4 to 2.6 trillion for 2025. While some investors may still focus on big land deals, AKRA is building value through consistent cash flow and infrastructure that supports long-term growth. The planned LNG terminal at JIIPE is one example of that forward-looking approach.

Of course, risks still exist. Land sales remain cyclical, trading volume depends on mining activity and weather conditions, and retail margins are still narrow. But this is no longer a one-dimensional story. AKRA is not just selling land. It is building a foundation for recurring growth in an ecosystem it controls.

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July 07, 2025

July 07, 2025

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