JAKARTA (TheInsiderStories) – The unit of Jardine Matheson Holdings Ltd., PT Astra International Tbk (IDX: ASII) has allocated a capital expenditure around Rp12 trillion (US$845.07 million) in this year, higher than last year at R 8.3 trillion. Most of the funds will be allocates for the mining company, PT United Tractors Tbk (IDX: UNTR).
In this year, the conglomeration firm also prepared a final dividend of Rp87 a share after shared the interim dividend of Rp27 a unit on October 2020, bringing the total dividend for 2020 amounted to Rp114 per share. Since last year, Astra start to look another businesses, replacing the businesses that are starting to fade.
In November of last year, PT Sedaya Multi Investama, has acquired 49.99 percent stake of PT Astra Aviva Life (Astra Life) from British’ Aviva International Holdings Plc. With the transaction, the company under Astra Financial group hold 99.99 percent of the insurance firm, directly and indirectly.
“This acquisition is a form of our belief in the life insurance industry that has promising prospects in Indonesia,” said the director, Suparno Djasmin, on Nov. 18.
In March 2020, Aviva has sold 50 percent shares of Astra Life to its partner. The transaction is expected to be completed in the fourth quarter of 2020. Both parties has set up the joint venture company in 2014. The deal is part of the conditional completion of Bangkok Bank Public Co. Ltd’ acquisition of the other unit, PT Bank Permata Tbk (IDX: BNLI), Aviva Indonesia’ bancassurance partner.
Through its subsidiary PT Astra Digital Internasional, the issuer is ready to develop four digital platforms as innovative products to meet the community’ demand. While, its infrastructure arm, PT Astra Tol Nusantara ready to expand the port business in line with the planned move of the country’ capital to East Kalimantan. Currently, the builder has run by PT Pelabuhan Penajam Banua Taka or also known as Astra Infra Eastkal.
In the same year, the company prepared capital expenditure around Rp27 trillion ($1.93 billion). Part of has spent on the digital business. Astra has entered the digital business by investing in the ride-hailing provider GOJEK worth of $250 million. In other sectors, the manufacturer will continue looking infrastructure projects and other potential business.
In toll project, Astra managed two toll road projects, Kunciran – Serpong toll road in Jakarta area and Surabaya – Moncokerto in East Java. While, United Tractors build power plant project joined with Japan’ Sumitomo Corp., and Kansai Electric Power Co. Inc., with total capacity 1,200 megawatts will operate soon. The management believed the new businesses will support its financial performance in the future.
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