JAKARTA (TheInsiderStories) - The company owned by Astra Group, PT Astra Agro Lestari Tbk (IDX: AALI) prepares a capital expenditure around Rp1.5 trillion (US$107.14 million) in this year, said the president director. Most of funds will be allocated for immature plants and replanting, which annually plans to cover 5,000 to 6,000 hectares.
“Previously we thought on the processing fatty acid methyl esther for biodiesel, but for the time being we are holding on to this plan until the condition conducive,” he told the audiences in one seminar on Wednesday (02/10).
From the nucleus estate, Astra Agro hope that this year the production volume can grow by approximately 5 percent compared to last year. Santosa said, around Rp250 billion allocates for factories, ports, infrastructure and other supporting facilities with hope that the national production of crude palm oil (CPO) rebound in 2021.
To help the industry, he asserted, the main key is in the government’ biodiesel program and lowering the export tax. Now, the government allowed exporters not pay the CPO levies when prices were below $570 per ton and imposed a maximum levy of $55 per ton if the price rises above $619 a ton.
He continued, in the midst of the current difficult situation, Astra Agro continues to ensure that its operations will run normally although demand is currently low. In terms of sales, he explained, the CPO inventory in China and India is quite low after the two countries locked the country.
In third quarter of 2020, the issuer posted a net profit of Rp582.54 billion, skyrocketing 424 percent compared to the same period last year amounting to Rp111.18 billion. The sales also rose 7.56 percent from Rp12.38 trillion to Rp13.32 trillion.
The Astra Group businesses was significantly affected by the COVID-19, especially in the second quarter of 2020, according to the president director, Djony Bunarto Tjondro. He continued, during this challenging time, Astra focuses on reducing operational costs and capital expenditure, working capital management, and liquidity certainty.
He asserted, the Group’ balance sheet remains strong with the availability of commitment of loan facilities worth Rp38.6 trillion. Recently, the conglomeration firm, PT Astra International Tbk (IDX: ASII) cut nearly half of its capital expenditure from Rp25 trillion to around Rp11 trillion due to the pandemic.
Beside, he continued, the publicly listed firm will focus on controlling costs and protecting the cash flow. Astra will also review projects and ongoing investments or to delay projects that are not critical.
The funds will be absorbed by its subsidiaries such as heavy equipment company, PT United Tractors Tbk (IDX: UNTR), Astra Agro, and other subsidiaries. The source of the spending is obtained from internal cash.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
