PT Berkah Beton Sadaya Tbk (BLES), the construction materials company owned by Indonesian business magnate Hermanto Tanoko, kicked off 2025 with a steep drop in profitability. In its Q1 2025 financial report, the company posted a net profit of only IDR 1.08 billion — a dramatic 95.73% decline from the same quarter last year. This financial downturn raises concerns among investors and highlights the challenging environment the firm is navigating.
📊 The Numbers Behind the Drop
Despite this sharp drop in net income, BLES managed to maintain relatively steady revenue levels. However, a significant rise in operating costs — particularly in raw materials and distribution — squeezed the company’s margins. Additionally, rising interest rates and inflationary pressures contributed to the overall financial strain.
Compared to Q1 2024, when the company booked over IDR 25 billion in profit, the current result signals potential headwinds in the construction sector and points to internal inefficiencies that must be addressed promptly.
🏗️ Expansion Plans Continue Despite Setback
Interestingly, BLES has not let its profit dip derail its expansion strategy. In early 2025, the company broke ground on its fifth manufacturing facility located in Banjarnegara, Central Java. With an investment of IDR 250 billion, this new plant is expected to boost BLES’ production capacity by over 1 million cubic meters annually.
When completed, the facility will bring the company’s total annual production to 5.6 million cubic meters — strengthening its position as a leader in the autoclaved aerated concrete (AAC) block industry in Indonesia.
🎯 Strategic Goals Remain Ambitious
Looking forward, BLES remains committed to its long-term vision. The management has set a bold revenue target of IDR 2.5 trillion by the end of 2025. This projection represents a significant leap, driven by the operational launch of the Banjarnegara plant and stronger distribution efforts across Java and surrounding regions.
To achieve this, the company is also investing in logistics and digital infrastructure, aiming to improve supply chain efficiency and customer reach in the increasingly competitive building materials market.
🌐 Market Response and Investor Sentiment
The sharp profit decline has understandably raised eyebrows in the market. However, some analysts see this as a temporary dip rather than a long-term concern. With its expansion roadmap, improved capacity, and potential recovery in demand for construction materials, BLES may bounce back in the coming quarters.
Investors are now closely watching the company’s Q2 performance to see if cost-efficiency strategies and increased production can reverse the current profit slump.
✅ Conclusion: Temporary Trouble or Long-Term Trend?
While BLES’s Q1 performance appears disappointing on the surface, the company is actively investing in future growth. Whether this is a short-term financial hiccup or the beginning of a more extended downturn remains to be seen. However, with a solid expansion plan and the backing of a well-established business figure like Hermanto Tanoko, BLES still holds potential to recover — and even thrive — in the months ahead.
