A number of listed companies under Salim Group poured out capital expenditures with total amount of Rp14.3 trillion (US$956.22 million) in this year - Photo by Biografiku

JAKARTA (TheInsiderStories) – A number of listed companies under Salim Group poured out capital expenditures with total amount of Rp14.3 trillion (US$956.22 million) in this year, said the director yesterday. The issuers are PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Salim Ivomas Pratama Tbk (IDX: SIMP), and PT PP London Sumatra Indonesia Tbk (IDX: LSIP).

According to the director of Indofood, Taufik Wiraatmadja in a virtual conference on Wednesday (09/24), the impact of the pandemic so far was insignificant to the performance of his company and ICBP. The contribution of noodle sales, he adds, increased by 12 percent from a year ago and exports jumped around 20 percent. 

The issuer prepares a capital expenditure (capex) of Rp8 trillion and Indofood CBP worth of Rp4.7 trillion in this year. The funds came from internal cash and bank loan facilities. Indofood‘ director, Thomas Tjhie, said that by the end of first semester (1H) of 2020, the company had spent around 24 percent and ICBP around 16 percent of the total budget.

Through its palm oil business subsidiary, Salim Ivomas, the group ready to add a new capacity of vegetable oil refineries in Jakarta, margarine factory in Surabaya, East Java, infrastructure facilities, rejuvenating palms, and new plants. The deputy president director of the issuer, Paulus Moleonoto, said the company prepared an investment around whit an investment funds Rp1.6 trillion, including for the unit, London Sumatra worth of Rp500 billion.

While, president director of London Sumatra, Benny Tjoeng said that the company’ estimated to absorbs the capex up to Rp500 billion by the end of the year. The funds will be used for maintenance and rejuvenation of immature plants in East Kalimantan and infrastructure improvements.

The plan is the factory to have a production capacity of 45 tons of FFB (fresh fruit bunches) per hour. He explained that the new planting activity has reached around 700 hectares, while replanting for fruit trees such as cocoa, tea and rubber is around 1,000 hectares.

As of June 2020, the core planted area of London Sumatera was 115,236 hectares, with around 82 percent of the total nucleus planted land being oil palm or around 95,045 hectares. Of that amount, consists of 85,629 hectares of mature oil palms and 9,416 hectares that are immature.

Earlier, owner of the Group, Anthony Salim, stated, the company will maintain growth momentum by capturing various opportunities. Now the conglomeration firms eyes various expansion in global market, especially in South America, East Euripe and Africa.

US$1: Rp14,800

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