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T Unilever Indonesia Tbk, a subsidiary of Anglo-Dutch consumers good giant Unilever, will allocate between ¤300 million (US$427.4 million) and 350 million euros over two years for capital expenditure to support expansion plans in Indonesia, a senior executive said.

 Unilever general manager and corporate secretary Sancoyo Antarikso said in Jakarta on Thursday that the funds would sourced internally and through bank loans.

Sancoyo said the new investments would be used to partly finance the construction of new factories at Cikarang, West Java, and in Rungkut, East Java.

“Unilever owns a large tract of land in these two areas,” he said at a press conference following
the company’s annual shareholder meeting.

At the same event, Biswaranjan Sen, Unilever’s supply chain director, said the additional investment was needed not only to
strengthen the company’s manufacturing activities, but also distribution networks.

“We are building new factories and adding new machines for all product categories to be able to serve more consumers and to provide better products,” he said.

Biswaranjan said Unilever would also use the funds to add to its distribution capacities including
distribution centers across the country.

 At the conference, Unilever president director Maurits Lalisang said the company currently operated eight company-owned factories, three central distribution
centers and hired 6,000 sales attendants assigned at major shopping centers across Indonesia to help customers.

He said the company posted 14 percent growth in total sales in the first quarter of 2011 to Rp 5.66 trillion from Rp 4.97 trillion in the same period last year.

“The food and ice cream categories contributed more to the growth although sales in other categories increased during the first quarter of this year,” Maurits said.

He added that the company also posted an 11.3 percent increase in gross profit to Rp 2.90 trillion in the same period, up from Rp 2.61
trillion.

The company’s operating profit rose 1.6 percent to Rp 1.33 trillion from Rp 1.31 trillion.

Unilever shareholders approved the company’s proposal to pay out all of last year’s net profits of
Rp 3.38 trillion as dividends, giving shareholders a dividend of Rp 344
per share.

The dividend will be paid out in the middle of July. (msa)