May 19, 2022

Focus on Indonesian wooden furniture companies: Integra Indocabinet


The company, headquartered in Sidoarjo (East Java), mainly produces indoor and outdoor furniture for homes, offices and hotels as well as wooden doors, wooden window frames and windows. ‘other wood and rattan products.

Integra Indocabinet is eager to expand its market expansion to Jakarta, the capital of Indonesia, on the other side of the island of Java. To achieve this, the company plans to launch new products (including parquet floors and wooden blinds), build new warehouses, establish new distribution points and enter the retail market.

Wang Sutrisno, chief financial officer of Integra Indocabinet, said the new products will be manufactured at the company’s factories in Lamongan (wooden floors) and Sidoarjo (wooden blinds). Before the end of the year, the company’s floors should be available on the market.

Currently, Integra Indocabinet has a warehouse in Sidoarjo with an area of ​​one hectare. However, it plans to build two new warehouses to serve the West and East Java markets: an additional one in Sidoarjo and one in Jakarta.

During 2018, the company also plans to open a new store in the Greater Jakarta region where it aims to sell its products to the middle class and elite segments of the company. There are several places in this region that are suitable, including South Jakarta, Bintaro, Alam Sutera, and Bumi Serpong Damai.

Integral Indocabinet’s The ma brand specifically targets the wealthier segments of Indonesian society, while its Vittorio the brand targets lower middle class segments. In the future, Integra Indocabinet wishes to establish a franchise model for its Vittorio brand. But before he can launch the franchise model, he needs to have the new warehouses in order to have enough space to store his furniture and other goods (the warehouse in the Jakarta area will also need to stock furniture for its future). opening of a branch in Jakarta).

But despite the importance of the domestic market, exports are even more vital for the company. During the first half of 2017, around 80% of Integra Indocabinet’s sales relate to exports, in particular to the United States (which contributes 50% of the company’s total exports), the European Union (17%) and China (14%). Integra Indocabinet now wants to add the Middle East, in particular Dubai and the United Arab Emirates, to its export market.

The United States, however, will remain the main focus of the company and therefore Integra Indocabinet also plans to launch a marketing center specifically for the American market.

In addition to furniture and other wood products, Integra Indocabinet also generates income from the sale of wood through its subsidiaries: (1) Nakata Rimba which holds a 45-year concession for 41,450 hectares of industrial wood in East Kalimantan, and (2) River Timber which has a 55-year concession for 97,500 hectares. Timber sales represent approximately 6 percent of total Integra Indocabinet sales.

Integra Indocabinet Financial Report:

2016 2017¹ A / A
Growth
Returned 1,300 1700 + 30.8%
Gross profit
141 181 + 28.4%

in billions of IDR
?? company target

Integra Indocabinet Financial Report:

H1
2017
Total assets
3561.4
Total responsibilities
1727.3
Total equity
1,834.0
Returned 846.2
Gross profit
274.1
Operating result 184.8
Net profit 90.7
ROA (%) 2.55
RCP (%) 4.95

in billions of IDR, unless otherwise indicated
Source: Kontan

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