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Jakarta Post

Astra seeks new opportunities in mining, infrastructure

  • Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, August 27, 2019   /  01:56 pm
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PT Astra International president director Prijono Sugiarto explains the business group's expansion plan.(kompas.com/Kristianto Purnomo)

Diversified conglomerate PT Astra International is seeking to further expand its businesses in the mining and infrastructure sectors to reduce its reliance on car manufacturing. The publicly listed company was hit badly during the first half of this year as the country’s car sales dropped sharply during the January-June period. To make matters worse, low crude palm oil (CPO) prices also caused its plantation subsidiary PT Astra Agro Lestari to suffer a financial loss during the first six months of 2019. With such unfavorable conditions, Astra booked a 3 percent increase in total revenues to Rp 116.18 trillion (US$8.147 billion) year-on-year (yoy), but its net profit fell by 6 percent to Rp 9.8 trillion. According to the Association of Indonesian Automotive Manufacturers (Gaikindo), the country’s total car sales dropped by 13 percent yoy to 481,557 cars during the Jan...