Jakarta. Indonesia Kendaraan Terminal (IPCC), Indonesia's largest listed vehicle terminal operator, reported a 9.28% decline in first-half net profit as weaker vehicle imports and geopolitical tensions weighed on its international terminal business.

Net profit fell to Rp 103.28 billion ($5.7 million) in the six months ended June, down from the same period a year earlier, according to the company's financial statements filed with the Financial Services Authority (OJK) and the Indonesia Stock Exchange.

Despite the earnings decline, the company maintained a net profit margin of 24.98%, reflecting cost controls and operational efficiency.

Acting President Director Bagus Dwipoyono said the company's performance was affected by external factors, including escalating conflict in the Middle East, which disrupted global automotive supply chains and increased international logistics costs.

At the same time, slower vehicle imports into Indonesia reduced activity at IPCC's international terminals.

"Global geopolitical conditions, including the conflict in the Middle East and the slowdown in Indonesia's automotive imports, have put pressure on the performance of our International Terminal, which remains IPCC's primary revenue driver," Bagus said in a statement on Tuesday.

He said the company views the challenges as temporary and typical of the global automotive logistics industry.

The Jakarta International Terminal, which accounts for about 87% of IPCC's consolidated revenue and operations, bore the brunt of the slowdown.

To cushion the impact, IPCC said it would strengthen risk mitigation, improve operational efficiency, optimize terminal capacity, and expand value-added services under its Integrated Auto Solutions strategy.

"We will continue strengthening risk mitigation, maintaining operational excellence through greater efficiency, optimizing terminal capacity, and developing value-added services so IPCC remains a reliable and sustainable vehicle logistics partner," Bagus said.

Finance, Human Resources and Risk Management Director Wing Megantoro said the company's financial position remained solid despite weaker earnings.

Total assets stood at Rp 2.04 trillion at the end of June, while current assets rose 4.01% to Rp 1.22 trillion from Rp 1.17 trillion at the end of 2025, indicating strong liquidity to support operations and future business expansion, he said.

Wing also noted that IPCC remains free of interest-bearing debt, giving it greater flexibility to navigate market volatility.

The company said it continues to prioritize spending on operational resilience, business innovation, and service quality while maintaining disciplined cost management.

Corporate Secretary Endah Dwi Liesly said the company disclosed the weaker financial results transparently as part of its commitment to good corporate governance.

"We are reporting these financial results transparently and on time, including adjustments resulting from global economic and geopolitical developments that are beyond the company's control," she said.

IPCC said it remains focused on preserving its financial fundamentals and creating long-term value for shareholders, customers, and Indonesia's automotive logistics sector despite ongoing industry headwinds.

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