Indonesian SOE Ramping Up Gold And Nickel Production

Indonesian SOE Ramping Up Gold And Nickel Production


PT Aneka Tambang Tbk is a 65%-state-owned Indonesian enterprise engaged primarily in mining, refining, and processing of metals including nickel ore, gold, silver, and bauxite.


See 2017 Hedge Fund Letters.

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It also mines coal. It is the largest nickel producer by capacity in the country, although precious metals account for nearly 2/3 of the group’s revenue.

Business Description

ANTM is a state-owned enterprise involved in the exploration, excavation, processing, and marketing of nickel ore, ferronickel, gold, silver, bauxite, and coal in Indonesia.

Its two major business segments, ferronickel and nickel ore, accounts for just over 1/3 of revenue, and gold, silver and precious metal refining accounts for just less than 2/3. Bauxite and coal are less than 3% of sales.

Indonesian SOE

Indonesia produces around 1/3 of the world’s nickel ore, but in January 2014 introduced a ban on raw nickel ore to encourage more value-added production in the country. This reduced world inventories of nickel ore, which only just started to recover in 2017 with the lifting of the ban. ANTM has been expanding downstream, as targeted by the government.

Nickel is used mainly in the auto industry and for kitchen use.

This year gold production should reach 2,201 Kg, up 11% YoY, ferronickel production should reach 26,000 tonnes, +19% YoY, while nickel ore should more than double to 11.3m wet tonnes.


Fachrul Razi has served as the President Commissioner of ANTM since 2015. A large portion of his work experience has been with the Indonesian Military and the Ministry of Defence following his education from Military college. He also currently holds positions as President Commissioner of PT Central Proteina Prima Tbk (CPRO IJ) and Commissioner of the holding company of PT Toba Bara Sejahtera Tbk (TOBA IJ). He has completed degrees in Law and Socio-Politics from several universities.

Indonesian SOE

Arie Prabowo Ariotedjo has been appointed the role of President Director of ANTM in 2017. He has worked as President Director of PT Wikaraga Sapta Utama and PT Medco Energi Mining Internasional prior to his current position. His education consists of a Bachelor and Masters of Science in Civil Engineering from Purdue University and University of Michigan respectively.

World Class Benchmarking

Profitable Growth has been among the worst since 2013 and ranked #10 in the past 12 months.

Profitability exhibit the same trend as Profitable Growth while Growth has seen massive improvements since 2014 and ranked #1 in the past 12 months.

Indonesian SOE

Both Asset utilization and Profit margin have been at very low ranks since 2014, displaying the same trend as seen in Profitability and Profitable Growth.

Both Sales growth and Margin change have had large fluctuations over the years but are currently performing relatively well, ranked at #2 and #5 respectively.

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Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company providing institutional investors with ready-to- invest portfolios in Asia that aim to beat the benchmark through superior stock selection. The company also provides buy- and sell-side clients with financial models to value any company in the world and World Class Benchmarking to determine what companies are financially world class. Previously, as Head of Research at CLSA, Andrew was voted No. 1 Analyst in Thailand in the Asiamoney Brokers Polls for 2008 and 2009. He was also voted No. 1 Analyst in Thailand in the 2009 Institutional Investor magazine All-Asia Research Team Report. Andrew earned his PhD in finance at the University of Science and Technology of China in Anhui province, with a focus on answering questions raised by fund managers and analysts during his career about picking stocks and managing portfolios. In addition, Andrew has been a lecturer in finance for 22 years at various universities in Thailand. Since 2013, he has been the president of the CFA Society of Thailand. He is also the author of How to Start Building Your Wealth Investing in the Stock Market.

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