PJM Region 1 Net Profit Soars 171% on Efficiency Measures

Maritime economic dynamics remain volatile. Nevertheless, PT Pelindo Jasa Maritim (PJM) Region 1 has demonstrated that revenue is not the sole measure of financial health. Up to May 2026, this Pelindo subsidiary managed to book a net profit surge of 171% against its Corporate Work Plan and Budget (RKAP) target, even though operating revenue was recorded at only 97% of the plan. This success is the fruit of an aggressive cost-efficiency strategy that successfully safeguarded the company’s margins amid operational pressures. When discussing the maritime business, ship call volume is usually the main determinant of performance. However, PJM Region 1 has proven there is another way to rake in profits. PJM Corporate Secretary Tubagus Patrick revealed that the main key to this success lies in a comprehensive cost intervention policy, where every expenditure item is evaluated periodically to ensure that each rupiah spent contributes directly to operational productivity. As a result, despite turbulence on the revenue side, profitability remained well above target. Why did revenue not reach the full target? Management confirmed a decline in ship call volumes at several major ports such as Belawan, Dumai, and the TUKS Tanjung Buton Terminal, which became a significant headwind for the income line. On the other hand, several operational units actually emerged as extraordinary growth drivers. Pilotage and towage services on strategic routes such as the Siak River in Pekanbaru, Kuala Tanjung, Bintan, and Karimun recorded growth exceeding targets, driven by increased container ship traffic and the activity of large-capacity vessels or mega ships requiring high-value maritime services. Not only relying on growth at potential hotspots, PJM Region 1 also demonstrated sharpness in managing expenditure. Up to May 2026, the company’s operating expense realisation only absorbed 90% of the allocated budget ceiling. According to Tubagus, this achievement is the result of a policy of deferring non-urgent asset procurement and maintenance programmes, as well as optimising operational costs in the field without reducing safety and service standards. In other words, cuts were made not in areas that touch the public, but in cost areas deemed unproductive. Consequently, this budget discipline automatically boosted EBITDA to a very healthy position, making PJM Region 1 one of the most resilient entities amid national maritime business fluctuations. Looking ahead to the remainder of 2026, PJM Region 1 has no intention of easing its pace. Management has set three main strategic pillars to maintain the positive trend: accelerating services at new potential hotspots to increase pilotage volume, strengthening strategic partnerships with stakeholders including accelerating the exploration of new cooperation spaces, and maintaining cost efficiency consistency to ensure year-end targets are achieved sustainably and not merely seasonally. ‘We have proven that amid uncertainty, operational discipline is the key to sustainability. We will continue to maintain this momentum,’ concluded Tubagus in a statement in Makassar.