KONTAN.CO.ID – JAKARTA. Several cable companies see the cable business continuing to show positive performance until 2024. This positive trend will be utilized by cable companies to improve performance after in 2022 demand for cables tended to stagnate.
Chairman of the Indonesian Electric Cable Companies Association (Apkabel) Noval Jamalullail said that the prospects for the cable business in 2024 are improving, which can be seen since early 2023.
“Cable orders for several projects from the government, private sector, and retail (general market) have increased to near normal levels before the Covid-19 period,” he told KONTAN, Friday, (16/2).
Talking about the price, Noval said, the cable price remains fluctuating because it depends on the world’s copper and aluminum prices which are included in international global commodity materials. “However (cable prices) are still at a normal and good level,” he continued.
According to him, this is also indicated by the fluctuations that occur which are still in the range of approximately 5% where there has been no extreme increase or decrease from 2023 until now.
Meanwhile, cable producer issuer PT Voksel Electric Tbk ( VOKS ) stated that the cable price trend this year has increased slightly. VOKS will take advantage of this price increase opportunity to improve performance.
Corporate Secretary Voksel Electric Masrana said, the current cable price trend has slightly increased compared to the previous year’s price. The increase in cable prices touched the range of 5% – 10% and depends on the type.
He said Voksel Electric’s strategy this year will remain focused on efficiency and productivity. Voksel also continues to seek breakthroughs for better quality products but in terms of price can be more competitive.
“Another strategy is that our business value chain will be optimized, considering that our controlling shareholder is a world-class cable player,” Masrana told KONTAN, Thursday (15/2).
In December 2023, Voksel Electric announced a new controller, namely a Hong Kong company, Hengtong Optic-Electric International Co. Ltd. The Hong Kong company purchased VOKS shares amounting to 1.78 billion shares or equivalent to 42.97%.
Regarding this year’s business target, Marsina said there was a little conservative for this year’s target compared to last year. This is because it is a political year so the company considers a lot.
VOKS will take advantage of the rapid development. If there is an increase in the development trend around the property, the need for cables will automatically increase. This will have an impact on the development of Voksel’s business.
Sales in the power cable sector increased due to the Main Distribution Material (MDU) and Refinery Development Master Plan (RDMP) Balikpapan projects. The increase was based on increased sales in 2023 and manufacturing cost efficiency.
Cable manufacturer, PT Jembo Cable Company Tbk ( JECC ) is optimistic that sales performance will increase in 2024. This is inseparable from the number of cable requests which are predicted to increase compared to last year.
Jembo Cable Company Director Antonius Benady said, JECC is targeting sales to grow up to 24% this year. While net profit is targeted to increase by around 3.5% to 4% of sales.
“The estimated increase in JECC cable sales is around 24% compared to last year, where unaudited sales realization reached IDR 3 trillion in 2023,” Antonius told Kontan, Thursday (15/2).
To achieve this target, JECC has prepared a number of strategies, including purchasing machines and intensifying the expansion of sales segments.