JAKARTA. PT Saratoga Investama Sedaya Tbk (SRTG) President Director Michael Soeryadjaya said the company's net loss of Rp 6.2 trillion was yet to be realised.
The net loss was caused by the decline of stock prices in SRTG's portfolio, following the movement of stock prices at the Indonesia Stock Exchange (IDX). As an investment company, SRTG's financial performance is affected by the movement of stock prices.
Throughout 2018, the Jakarta Composite Index (JCI) fell 2.5%; however, the stock prices of companies that SRTG invests in dropped further, such as ADRO which dropped 24.7% and TBIG which dropped 44%. Only MDKA recorded a positive performance with a 70.6% jump.
However, the stock prices of ADRO and TBIG caused SRTG a net loss of Rp 6.2 trillion.
Mr Soeryadjaya said market volatility throughout 2018 and the implementation of new accounting standards also contributed to SRTG's net loss. However, he affirmed that such conditions are normal.
PT Koneksi Kapital Head of Research Marolop Alfred Nainggolan said the loss experienced by SRTG was normal, because it is yet to be realised. The loss could turn into a profit if SRTG's investment market value improved. (AM/MS)