MGRO BOOSTS EMPLOYEE LOYALTY THROUGH SHARE SAVINGS
29 January 2019
Bisnis.com, MEDAN-Saving stocks is not only about making the most of your profits. For employees of an issuer, buying company shares will increase their sense of belonging and loyalty at work.
This is what is applied by Usli Sarsi, President Director of PT Mahkota Group Tbk. The Palm Oil plantation issuer, which was just listed on the Indonesia Stock Exchange in July last year, continues to invite all employees to buy their own company shares.
“Owning the shares where they work increases the sense of belonging, loyalty and morale of employees. Buying shares of the company where they work also realizes support for raising the company,” he told Bisnis, Monday (01/28/2019).
Not only formal employees, he continued, the company's drivers were also invited to save shares. As a result, the driver who ventured to buy shares of the issuer coded MGRO with a capital of IDR 5 million, within 6 months it had become IDR 15 million.
“He's a driver, so far his savings in the bank have not increased, he bought our shares for IDR 5 million, now it's IDR 15 million. He probably prays for us every night, which is positive,” he said.
In addition to inviting employees to buy company shares, he said, management also participated in educating potential new stock investors in the areas where MGRO factories are located. The goal is for the community to feel the benefits of investment and support the company's good operations.
Usli said that the socialization of the palm oil downstream business prospects, plans and goals of the company in the future continues to be transmitted to employees. This method is quite effective in increasing employee loyalty to the company.
In July 2018, the issuer coded MGRO released 703,688,000 shares with an offering price of IDR 225 per share. Currently, the share price per share reached IDR 940 at the market close on Monday (01/28/2019).
In 2019, the company plans to realize capital expenditure of IDR 200 billion for the construction of processing facilities. In terms of performance, the company is targeting a profit of IDR 123 billion and sales of IDR 5 trillion, an increase of 2.5 times from the 2018 target. This target is expected to be achieved through the palm oil turnaround process which will contribute approximately 40% to the total sales target.
Meanwhile, it is building a processing facility with a capacity of 1,500 tons / day, while the Kernel Crushing Plant has a capacity of 200-400 tons / day. The construction will be carried out at the location of the Mahkota Group's subsidiary company, PT Intan Sejati Andalan.
In addition to processing facilities, the company is building an additional stockpile tank unit with a capacity of 20,000 tons that will strengthen the current stockpile tank capacity of 76,000 tons. On the upstream side, the company will expand its oil palm plantation by acquiring 5,000-20,000 hectares of land. When the plant is operational, the company can produce derivative products such as olein (cooking oil) and sterin (raw material for margarine).