For Immediate Release
Booked Strong Performance, Saratoga Posted a Record
Dividend Income in 2016
Implementation of SFAS 65 accounting standard has reflected a more accurate picture
of the value growth of the Company
Jakarta, 29 March 2017 – PT Saratoga Investama Sedaya Tbk. (ticker code: SRTG)
successfully booked a record in devidend income of IDR 622 billion in 2016. The strong
dividend contribution from the investee companies demonstrated the mature nature of
Saratoga’s portfolio holdings; as it also reflected the long-term sustainability in the sense that
the investee companies are self-sufficient and able to provide dividends to the shareholders.
Saratoga President Director Michael W.P. Soeryadjaya explained that the record in dividend
income reflected the solid performance of its investee companies. This is also attributable to
Saratoga’s discipline in applying its full-cycle-investment strategy of invest-grow-monetize.
“As an active investment company, we always aim at reaching the full cycle of investment
wherein we do not only invest, but are actively involved in growing and expanding the company
to reach its full potential. Most of our investee companies reach this stage, which showcases a
great combination of well-founded investment and growth strategy and strong execution,” said
The strong performance of Saratoga’s investee companies in 2016 reflected in its investment in
natural resources and consumer sector. In the natural resources sector, PT Adaro Energy
Tbk.’s (ticker code: ADRO) performance grew distinctively due to the recovery in coal prices
after reaching the lowest point in 5 years and financial closure of Central Java power plant
project with the capacity of 2 x 1,000 MW. This fundamental strengthening has successfully
boosted ADRO’s share price from IDR 515 to IDR 1,695 per share in 2016.
In the consumer sector, PT Mitra Pinasthika Mustika Tbk. (ticker code: MPMX) continues to
strengthen its performance driven by revenue growth in the auto parts customer segment as
well as distribution and retail. The solid performance has brought MPMX’s share in 2016 from
IDR 489 to IDR 820 per share.
With the positive performance and as a reflection of Saratoga’s commitment to shareholders, in
2016, Saratoga also distributed dividends for the first time since its IPO in 2013 of IDR 86 billion
or IDR 32 per share for full year 2015 result and interim dividend of IDR 165 billion or IDR 61
per share for 2016.
New accounting treatment allows better reflection of Saratoga’s performance as an
active investment company
Saratoga’s robust performance throughout 2016 was also driven by a few factors including the
implementation of the new accounting standard and dividend income from investee companies.
The implementation of the Statement Financial Accounting Standards (SFAS) 65 starting 2016
allowed Saratoga to apply fair value accounting treatment to its investment assets.
In 2016, with the new accounting standard, Saratoga successfully posted an investment income
of IDR 6.34 trillion – IDR 3.39 trillion of which was contributed by the one-off adjustments, which
marked the transition from equity accounting to fair value accounting treatment. Meanwhile, the
increase in the investee companies’ share prices during 2016 period contributed IDR 2.94
trillion, which was mainly attributable to the increase in ADRO & MPMX shares.
As part of the change in accounting treatment, the company recorded a net profit of IDR 5.67
trillion with total assets of IDR 25.1 trillion, up 51% compared to IDR 16.7 trillion in 2015. This
result better reflected the performance of Saratoga as an active investment company. Saratoga
is the first public company to implement SFAS 65 accounting standard in Indonesia.
Saratoga Chief Financial Officer Jerry Ngo said that the net profit achievement in 2016 does
not necessarily serve as a guidance for the company’s performance in the future, as investment
income derived from one-off adjustments is a single-occurence when the company applied
SFAS 65 accounting standard. Furthermore, the increase of the share prices as part of
Saratoga’s investment income growth will also be heavily reliant on the share price at the stock
As an active investment company, the accounting standard implemented by Saratoga has
provided a true illustration of the company’s business performance in the future. This is
expected to serve as guidance for investors in making the best decisions for their investments.
“Saratoga’s performance in the future will be supported by the perfomance of our investee
companies. We believe that with positive economic growth and opportunities, we will continue
to provide optimal added value to our stakeholders,” Jerry said.
As an active investment company, Saratoga consistently initiates new investments in 2016 to
strengthen its three investment pillars, i.e. Natural Resources, Infrastructure and Consumer.
Following a thorough analysis and careful consideration, in 2016 Saratoga acquired 5.63%
shares in PT MGM Bosco Logistik (MGM Bosco), one of the leading cold-chain logistics
companies in Indonesia.
Saratoga also invested in PT Famon Awal Bros Sedaya – a corporate group that currently owns
and manages 4 (four) of Indonesia’s prominent hospitals under the brand of RS Awal
Bros (RSAB Group). The hospitals under FABS have been operating in several major cities in
Indonesia, i.e. Jakarta, Bekasi, Tangerang, and Makasar (FABS Hospital Network).
2016 was also a good year for Saratoga when it comes to divestment. To highlight a few
divestments we made in 2016, during the first quarter we divested from PT Pulau Seroja Jaya,
a shipping company that provides marine chartering services of tugboats and barges that we
invested since 2008, for IDR 98 billion. In the fourth quarter, we divested some of our palm
plantation assets of Provident Agro with a market premium price per hectare. Lastly, in the first
quarter of 2017, we managed to divest from PT Lintas Marga Sedaya, a long term toll-road
construction investment project that we invested since 2006. It is with persistent hard work and
high conviction of the project for the past 10 years that drove us to complete the project. The
divestment was closed for IDR 900 billion.
Meanwhile, to support national energy resources and demand, Saratoga through its investee
company, PT Medco Power Indonesia (MPI) starting from 18 March 2017 has commenced
commercial operations of the first unit of the Sarulla Geothermal Power Plant with a capacity of
110 MW. The Sarulla project is one of the largest geothermal power plants in the world with up
to 330 MW total capacities in one single contract, and consists of three phases. The Second
and Third phases are scheduled to start commercial operations in 2017 and 2018. Power
generated from Sarulla Geothermal Power Plant is sold to Perusahaan Listrik Negara (PLN)
over a period of 30 years.
“Saratoga will continue to take initiatives to support the government’s programs through
investements in strategic sectors. We believe with Saratoga’s experience and strategies, we
will be able to make significant contributions to the Indonesian economy,” said Jerry.
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