Cigarette-maker, PT Gudang Garam Tbk (IDX: GGRM) entered toll road business through the unit, PT Surya Kerta Agung - Photo by the Company

JAKARTA (TheInsiderStories) – Cigarette-maker, PT Gudang Garam Tbk (IDX: GGRM) entered toll road business through the unit, PT Surya Kerta Agung (SKA), said the issuer today. The management stated that the establishment of the grandson firm, PT Surya Kertaagung Toll (SKT), took place on Nov. 6 and domiciled in Kediri, East Java.

According to Heru Budiman, the corporate secretary of the company, basic capital of SKT worth of Rp1.2 trillion (US$85.71 million) with issued and paid-up capital of Rp300 billion or 300,000 shares. Majority stakes of the new entity owned by SKA and Budiman hold 1 percent.

Before set up the toll road company, Gudang Garam has established SKA to build Kediri Airport. The manufacturer together with PT Suryaduta Investama injected capital of Rp200 billion at the new unit. SKA engaged in the development, upgrading, maintenance and repair of roads, highways and toll roads, bridges and overpasses.

The company has prepared funds around Rp10 trillion to construct the Kediri Airport in East Java. The project is part of the country’ National Strategic Project with the public private partnerships scheme. Airport in Kediri has been built end of 2018 and by 2019 will start operating. 

Based on Gudang Garam report, the airport runway has length 3,200 meters. State-owned airport operator PT Angkasa Pura II will help the tobacco producers to design and manage the airport. Currently, the company owned air transport business, Surya Air. The director, Istata Taswin Siddharta, said the producer will remain focused on tobacco businesses..

In nine months, the company posted a net profit Rp5.65 trillion, dropped 22 percent compared to last year with worth of Rp7.24 trillion caused of the COVID-19 pandemic. But, the revenues rose 2.03 percent from Rp81.72 trillion to Rp83.38 trillion.

Gudang Garam is one of the leading companies within the cigarette industry in Indonesia that has been established since 1958 in the town of Kedir. Until now, the company has widely known both domestically and abroad as a producer of high quality kretek clove cigarettes.

The company products can be found in many varieties, ranging from SKL (sigaret kretek klobot or corn husk-wrapped clove cigarettes), SKT (sigaret kretek linting tangan or hand-rolled clove cigarettes, up to SKM (sigaret kretek linting mesin or machine-rolled clove cigarettes).

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com