Astra focuses on strengthening three core businesses to drive long-term growth - BCA securities

PT Astra International Tbk (Astra) has reshaped its business strategy to strengthen three core businesses—automotive, financial services, and heavy equipment and mining solutions—to drive long-term growth and value creation.

Astra’s President Director Rudy stated that the move aligns with changing market dynamics and the company’s strategic review ahead of its seventh decade.

“Overall, this strategy aims to enhance the quality of the business portfolio and improve capital efficiency, resulting in profit growth and added value for all stakeholders,” Rudy said in a statement in Jakarta on Monday.

He noted that these three core businesses have historically been the largest contributors to the company’s performance, accounting for around 90% of Astra’s profits.

Rudy explained that the automotive business will continue to be strengthened through the development of the entire ecosystem, from new and used vehicle sales, spare parts, after-sales services, to customer networks across Indonesia.

Meanwhile, the financial services business will focus on optimising the ecosystem through diverse products and services for various customer segments.

In the heavy equipment and mining solutions sector, Astra will strengthen the mining supply chain ecosystem and develop new growth sources.

In addition to the three core businesses, Astra will pursue other portfolio developments with a focus on strategic alignment and long-term partnerships.

The company is also strengthening discipline in capital allocation through maintenance capital expenditure, value-Adding investments, consistent dividend payments, and share buybacks at appropriate valuation levels.

According to company data, between 2015 and 2025, Astra’s net profit more than doubled from Rp15 trillion to Rp33 trillion, a 126% increase.

Over the same period, dividends per share rose 245% from Rp113 to Rp390.

On human resources, Astra emphasises continuous employee development through sustainable work environments.

The company currently employs over 190,000 staff and hundreds of thousands of partner employees.

In social initiatives, Astra continues to implement the Astra Prosperity Village programme, which encompasses health, education, entrepreneurship, and environmental sectors.

Currently, over 1,500 Astra Prosperity villages across 35 provinces benefit over 3 million people.