Introduction from President Director

Gersang Tarigan

President Director PT KDL

Throughout 2018, despite challenges from external conditions, we are grateful that the Combine Cycle Power Plant (CCPP), which has been in recovery status for a long time, has been fully operational again in May-June 2018. In fact, its operation is now in full has reached a capacity of 115 MW with the lowest gross heat rate during the production of the PT KDL plant. The return of the operation of this plant signifies our readiness to serve customer demand in the Krakatau industrial area which continues to increase every year.

As is known, the number of KDL customers continues to increase each year with the latest number recorded as many as 2407 customers, an increase of 2.24 percent from 2017 with a total of 2353 customers. The growth of new customers came from the household and business sectors, with total capacity channeled to five customer segments totaling 571,384.50 kVA. We believe that in the future with various strategies run by corporations, the number will continue to increase.

Still in the same year, several other sectors besides electricity generation experienced significant gains. From the gas retail sector, PT KDL managed to record revenues of USD 47,933,583 or an increase of 59.54 percent from the gas sector revenue in 2017 which was only USD 19,391,852. This is a special achievement for companies in increasing profitability.

In order to secure the performance of the company throughout 2018, which is still burdened by the long-term debt of Bank Mandiri creditors, a number of strategic efforts have been carried out as strengthening, among others, asset optimization, excess electricity supply from Krakatau Posco, collaborative efforts to build a Solar Power Plant with PT Krakatau Tirta Industri (PT KTI), increase network reliability, negotiate Gas raw material prices with PT PGN and accelerate the completion of strategic projects such as the construction of HSM # 2 Main Transfer Station (MTS) V.

We know that the big challenges from external conditions are now quite large. The presence of ESDM Ministerial Regulation No.1 of 2017 and the regulations governing the implementation of the gas business should be considered as challenges that can hinder the company's revenue. In addition, the plan to build a 150 MW coal-fired power plant which continues as an effort to increase generator production capacity makes the corporation must be able to manage strategic steps as well as possible.

We believe that with reliable and proactive Human Capital, our electricity services continue to increase, bringing competitive advantages among industrial plants in other regions. Thanks to the Grace of Almighty God and the heart felt efforts of management and employees of PT KDL, in 2018, PT KDL managed to record positive financial performance. Hopefully in the future the company will continue to grow and provide the greatest value to shareholders.

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