Dear Shareholders and Stakeholders,
Praise and gratitude we pray to the presence of God Almighty, the Company is able to provide a very proud performance.
As a form of responsibility of the Board of Directors in managing the Company, allow us to convey the achievement of the Company's performance for the Fiscal Year ending 31 December 2017 in the form of Annual Report to all Shareholders and other Stakeholders. This report is also part of the application of Good Corporate Governance principles.
Economic Conditions 2017
In line with the positive development in developed and developing countries as the main mover of the world economy. The World Bank estimates the world economy in 2018 to grow by 3.1% compared to the world economic growth in 2017 which recorded about 3.0%. The strengthening of world economic growth is mainly supported by the role of developing countries.
In line with the economic development of developing countries in Asia, Indonesia's economic growth is well maintained and grows slightly better in 2017 than in the previous year. In 2017, Indonesia's economy grew 5.07% slightly better than 5.02% in the previous year.
Indonesia's economic growth in 2017 is heavily influenced by domestic factors. The Indonesian government with a new leadership era, focuses on accelerating performance and infrastructure development to build Indonesia's competitive advantage in terms of logistics. This Government Program is the focus of the Company in the future.
Strategic Policy and Achievement of the Company
The Investment Strategy applied by the Company is to invest in value-added and competitive advantage by making the right investment decisions and synergizing with other business units to add value to the customer.
The HC Development Strategy begins with an organizational design tailored to the Company's developmental direction and develops human capital competencies to support the growth of the Company. During 2017, the Company has certified as many as 2,400 seafarers.
The above strategic policies have been able to increase the achievement of the Company, where revenue for 2017 grew by 12.14% while comprehensive income grew by 74.55% after achieving similar growth in 2016 by 16% for revenue and 191% for comprehensive income.
In terms of asset capitalization, excellent performance in 2017 has made the Company the first public shipping company on the IDX to reach the largest capitalization of more than Rp5 Trillion or arounf US$370 Million. This means 2.1 times the book value of total assets after maintaining a stabe price between Rp705-720 per share.
In terms of investment, in 2017, the Company successfully invested 5 new vessels consisting of two oil tankers and three dredging units in a total investment of approximately US$30 Million. In terms of Financing, all investments are financed by our long-standing creditor who has been rendering their trust to us since we were difficult periode.
Business Segment Performance of the Company and Business Prospects 2018
In LNG business, the business prospects that at the beginning of the year focus on the PLN (State Electricity Company) tender has not materialized until the end of 2017. in 2018, we predict there will not be any real upcoming projects in Indonesia due to the political circumstances.
Therefore, the Company's growth strategy is expanding market to East Asia Region which is develop rapidly.
The Company's strategy in 2018 is to certify more than 4,000 crew and prepare for the growth of this business segment through mergers and acquisitions. In addition, the Company also prepares other cooperation for the delivery management unit.
Human Capital Development
The Company has a high commitment in the management of its Human Capital (HC). The Company is fully committed to the process of developing its employees through the planning of education and training programs that improve quality, competence, knowledge, and skills.
By 2017, the Company has consistently sent its employees to attend nearly 50 knowledge management trainings in addition to internal monthly special Knowledge Briefing training to develop the capacity of all employees.
Not only at the staff level, to improve managerial competence and quality, the Company also sends employees at manager level to continue postgraduate study in Business Administration (MBA) and International Trade Law (LLM). In 2018, the Company has plans to open an MBA and Maritime Business/Logistics program in cooperation with IPMI (Institute of Management Development Indonesia) and STC Rotterdam.
Implementation of Corporate Governance Principles and Social Responsibility
The Company is committed and consistent to execute good corporate governance which is also known and executed by all employees from the Board of Commissioners, the Board of Directors, Management, to Employees, to meet the demands of Stakeholders in achieving the Company's expected target.
This year, we are continuing the Company's corporate culture, Reliability, Integrity and Excelence Services. All three have been introduced since 2012 as the core spirit of GCG Company.
By 2017, the Company has complemented the various GCG guidelines and derivatives and socialized them to make GCG implementation more effective. The Board of Directors believes that the implementation of GCG principles will encourage the Company to create maximum value for the Company and provide added value for all Stakeholders.
In 2018, the Company will employ an external auditor to assess GCG and CSR practices to come up with recommendations and formulation of current practice into more comprehensive written guidelines.
The various Awards received by the Company in 2017 is an expression of the real GCG alive in our Company.
In the implementation of social responsibility, the Company's overall corporate strategy and implementation is directed to the education sector and serves as the frontline for the Company's CSR Program. The Company believes that education is a key element to provide qualified human capital in supporting the continuous growth of the Company and beloved country.
The success of the Company's certification unit and education unit, as mentioned earlier, is basically the concrete result of the CSR strategy for the Company's internal environment.
We aware that our achievement in 2017 and also upcoming 2018 will never happened without the support of our customers, suppliers, partners, management teams & employees, and other Stakeholders.
On behalf of the Board of Directors, I would like to thank you and convey our appreciation to all of you and wish that your understanding support always be with us in ENTERING NEW EPISODE 2018 - 2025.