Multitrend Indo (BABY): Strait of Hormuz Closure Has Not Yet Significantly Impacted Operations

JAKARTA — The retail issuer PT Multitrend Indo Tbk states that the closure of the Strait of Hormuz has not yet had a significant impact on the company’s operational activities or financial performance.

In a disclosure to the Indonesia Stock Exchange, the company explained that the availability of goods and distribution are still running normally.

“To date, there has been no significant impact on the supply chain. The availability of goods and distribution continue to run normally,” said Multitrend Indo’s President Director Niraj Jain in the disclosure on the official Indonesia Stock Exchange (BEI) website, quoted on Wednesday (25/3/2026).

This is triggered by several factors, including a decline in consumer confidence, cancellation of travel plans, and a wait-and-see attitude from customers.

However, management emphasised that the impact remains controllable and not material to the company’s overall performance.

For the medium to long term, the company projects that the impact on the supply chain will remain limited.

The company stated that the supply source diversification strategy implemented previously provides resilience against potential global disruptions.

On the other hand, the closure of the Strait of Hormuz has the potential to affect global commodity prices, particularly related to energy and logistics. The company anticipates increases in transportation costs and potential rises in prices for certain raw materials.

Nevertheless, to date, the impact on operational costs is considered not significant. Management is also continuously conducting active monitoring of developments in global commodity prices.

Such strategies include diversifying suppliers with a focus on local and regional sources, optimising inventory management, and operational cost efficiency without reducing service quality.

In addition, the company is also adjusting marketing strategies to maintain demand as well as strict monitoring of macroeconomic and geopolitical conditions.

According to Jain, these steps aim to ensure the company remains adaptive and resilient in facing global dynamics.