Astra (ASII) Announces Strategic Repositioning to Focus on Three Core Businesses
JAKARTA - As it approaches its seventh decade, PT Astra International Tbk (ASII) will focus on its core businesses with strong performance and implement a targeted portfolio development strategy for other businesses.
Astra will also strengthen discipline in capital allocation to support improved performance and returns, while balancing short-, medium-, and long-term profit growth.
Astra President Director Rudy said the company’s seventh-decade milestone is a moment for reflection to drive growth and create long-term value for stakeholders through a comprehensive strategic review.
He added that Astra is implementing a targeted portfolio development strategy for other businesses and strengthening capital allocation discipline.
Overall, the strategy aims to enhance business portfolio quality and capital efficiency, driving profit growth and value for stakeholders.
In the strategic review, Astra evaluates each business across aspects like market challenges, strategic positioning, future profit potential, and investment returns.
Rudy stated that Astra will focus on the three main businesses contributing 90% of profits.
The automotive business will not just focus on new vehicle sales but optimise the entire Astra automotive ecosystem built over decades, including new and used car sales, spare parts, after-sales services, and a nationwide customer network to maintain its leadership in the industry.
The financial services business will focus on optimising the ecosystem through diverse products and services for various customer segments.
The heavy equipment and mining solutions business will strengthen mining supply chain ecosystems and develop new growth sources to enhance competitiveness and long-term value creation.
For other portfolios, Astra will pursue targeted portfolio development aligned with its ecosystem and capabilities, building strategic partnerships to complement capabilities and long-term growth needs.
Rudy also explained that over the past decade (2015-2025), Astra’s net profit more than doubled from Rp15 trillion in 2015 to Rp33 trillion in 2025, a 126% increase.