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Astra capital expenditure flat this year
Publicly listed diversified group PT Astra International, Indonesia's biggest car assembler, said on Tuesday that it was unlikely the company would raise its capital expenditure this year due to the slowing economy
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ublicly listed diversified group PT Astra International, Indonesia's biggest car assembler, said on Tuesday that it was unlikely the company would raise its capital expenditure this year due to the slowing economy.
Astra president director Prijono Sugiarto said that Astra would allocate Rp 13 trillion (US$1 billion) in capital expenditure this year, the same amount it spent last year.
"Everything is down, from the sales of motorcycle and cars as well as the drop in profits from commodities due to declining prices," he said.
"This year, only United Tractor [heavy equipment supplier] and our financial service businesses will see growth," he said.
Priyono said that around Rp 5 trillion of the capital expenditure would be allocated for United Tractor, Rp 2 trillion for Astra Agro Lestary and around Rp 500 billion for opening new outlets for Toyota and Daihatsu. (ren)(+++)
