JAKARTA- State-owned arms manufacturer PT Pindad is seeking to issue bonds worth Rp300 billion at the end of this year or in the early first quarter of 2017. President Director Silmy Karim stated the company is drafting a plan to issue the bonds in cooperation with securities house PT Mandiri Sekuritas.
Pindad has decided to set aside up to Rp500 billion in funds as capital expenditure this year. The funds will be utilized to increase the company’s production capacity by procuring more ammunition and weapon production machinery. Pindad has launched four new weapons, namely Assault Rifle SS3, Subsonic 5.66 mm, Assault Rifle SS2, Sub-machine gun, and Pistol G2 Premium.
This year, the company expects its sales to increase to Rp3 trillion this year, compared to Rp2 trillion in 2015. The sales forecast is in line with the increase in the number of contracts the company has signed with domestic and foreign buyers in 2016 for the supply of pistols, rifles, and assault vehicles. Pindad has received orders from two Middle Eastern countries for new weapons launched by the company due to their high accuracy and quality. (*)