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oultry company PT Japfa Comfeed Indonesia (JPFA) is allotting approximately Rp 1 trillion (US$102 million) for their capital expenditure this year to keep its revenue and profit uptick in line with the industry’s 15 percent growth.

Japfa’s senior vice president, Putut Djagiri, said on Wednesday that this year’s capital expenditure (capex) figure would closely match the Rp 1 trillion disbursed in 2012.

However, the company was eyeing bank loans instead of a bond issuance, a move they made last year, to raise capex funds, he added.

“Although we are still considering the size of bank loans, we estimate that the proportion of bank loans to internal cash would stand at 50:50,” he said, adding that the company possessed roughly Rp 800 billion in internal cash.

The company plans to pour the majority of its expenditure into their poultry business, which contributed over 80 percent to the company’s revenues.

The company operates animal feed factories in addition to day-old chicken (DOC) farms.

Japfa recently conducted a stock split with a ratio of 1:5 to improve the liquidity of its shares, which was traded at Rp 8,800 at the close of the Wednesday’s trading session.

Putut noted that remaining revenue came from the company’s aquaculture and cattle fattening business.

He shared that the company was aiming to increase both revenues and profits by 15 percent this year in accordance to the expansion that the poultry industry would experience.

He noted that the company earned Rp 19 trillion in revenues in 2012.

Ignatius Herry Wibowo, Japfa’s finance director, acknowledged that the company, which experienced impacts from hikes in electricity tariffs, fuel prices and workers wages, was considering price increases as well.

“However, we shall raise prices proportionately to avoid negatively impacting farmers,” he said.

This year, the company planned to lift the production volume of their animal feed by bringing in additional machines at their current factories.

“However, we have no plans to build new factories,” he said.

Herry stated that the company would have to consider factors such as market size before deciding to establish businesses in certain areas.

Meanwhile, Putut added that this year, the poultry industry would remain robust as demand for poultry had increased.

“The income spread in Indonesia is becoming more even, therefore more people are able to afford chicken,” he said.