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Economy in brief: Gudang Garam launches subsidiary
JAKARTA: Indonesia’s second-largest clove cigarette producer, PT Gudang Garam (GGRM), has established a new subsidiary to support its tobacco processing operations, the company announced on Monday
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J
AKARTA: Indonesia’s second-largest clove cigarette producer, PT Gudang Garam (GGRM), has established a new subsidiary to support its tobacco processing operations, the company announced on Monday.
The company invested Rp 150 billion (US$15.69 million) in PT Surya Inti Tembakau, which was established on Sept. 21. It currently holds a 99.9 percent stake in Surya.
The establishment of Surya brings Gudang Garam’s total number of subsidiaries to 23. Most of the subsidiaries operate in trading.
During the first half of 2012, Gudang Garam’s revenues rose by 18.6 percent to Rp 19.84 trillion from a year before.
Despite the increase in revenues, the cigarette producer saw its net profits fall to Rp 2.12 trillion, down 8.6 percent from a year before.
It attributed the fall to the soaring costs of goods sold, which surged 26.2 percent to Rp 19.01 trillion from 2011.
