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Waskita Precast earmarks Rp 4t for expansion outside Java
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Indonesia Stock Exchange (IDX) president director Tito Sulistio (center), Waskita Beton Precast president commissioner Tunggul Rajagukguk (left) and president director Jarot Subana (right) pose for a photo session after the company's listing ceremony in Jakarta on Sept. 20. (JP/Anton Hermansyah)
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recast concrete producer Waskita Beton Precast has allocated Rp 4 trillion (US$304.18 million) for capital expenditure (capex) to expand its business outside Java up to 2018.
The company, which pocketed Rp 5.16 trillion from its official listing on the Indonesian Stock Exchange (IDX) on Tuesday, has prepared Rp 1.1 trillion of capex this year, Rp 1.9 trillion next year, and the remaining Rp 1 trillion for 2018.
Waskita Beton Precast president director Jarot Subana said Rp 650 billion of the IPO proceeds would be used to build two factories currently being constructed in Palembang, South Sumatra, and Klaten, Central Java, giving the company 10 factories in total.
"We want it to be 13 factories in 2018, the next three factories will be built in East Kalimantan, South Sulawesi and North Sumatra. We’ve already secured land there," he said at the IDX building in Jakarta on Tuesday.
With these new factories, he continued, the proportion of sales generated in Java could be reduced from 70 percent to 60 percent in 2018. Around 85 percent of the company's sales come from the firm’s parent company Waskita Karya.
"We’ve secured Rp 7 trillion in new contracts, from the 2016 target of Rp 7.6 trillion. But we expect to book Rp 8 trillion by the end of the year and we forecast profits after tax of Rp 620 billion," Jarot said. (ags)
