Astra Agro to spend nearly Rp 1.2 t for plantation improvement, fertilizer plant
The Jakarta Post
Publicly listed plantation firm PT Astra Agro Lestari (AALI) plans to spend Rp 1.16 trillion (US$87.02 million) in the second half of this year, mainly to improve unproductive plantations and finish construction of a fertilizer plant.
The figure represents 60 percent of its capital expenditure totaling Rp 2 trillion for this year. Another 40 percent was disbursed in the first half.
President director Santosa said intensive care was necessary for unproductive plantations as well as trees aged less than three years old in an overall area of 30,000 hectares.
The firm also aims to complete the development of its fertilizer plant by the end of this year.
"We hope to see the completion of the fertilizer plant this year so we can use the fertilizer for our own plantations and those of our farmer partners," he told reporters at the Indonesia Stock Exchange Tuesday.Read also: Astra Agro pessimistic about CPO production in 2016
In the January-June period, Astra Agro registered a positive performance thanks to an increase in both sales volume and value of crude palm oil (CPO).
Its revenue climbed by 34.7 percent year-on-year (yoy) to Rp 8.55 trillion, while its net profit also jumped significantly by 31.7 percent to Rp 1.04 trillion.
As of June, its oil palm plantations covered 297,000 ha, of which 233,300 ha were managed by Astra Agro itself and the rest were run by its farmer partners. (lnd)
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