JAKARTA – PT Indah Kiat Pulp and Paper Tbk (INKP) distributed the cash dividend today as much as Rp 30 per share for the financial year of 2016. The dividend of Rp 30 per share is equal to 6% of the company’s net profit. The dividend grew from Rp 5 from previous year noted Rp 25 per share.
Several minor shareholders did not agree with the amount of the dividend distributed which represent 0.176% of 7,516,600 shares. They protested the amount of dividend was very small which is around 6%, therefore it’s not the in line with the prospectus.
Indah Kiat booked the net profit in 2016 as much as US$ 202.8 million, where US$ 1 million is for reserve fund, US$ 12.32 million is distributed as cash dividend and the rest will be kept as retained earning. According to Director of Indah Kiat Suhendra Wiriadinata, the distribution of dividend was small due to the expansion for several products that have competitiveness in the future.
The company allocated the capital expenditure of 2017 as much as US$ 150 million, which is taken from the net profit of the company. The consolidated net profit fell approximately 8.9% in line with the decrease of pulp and paper price. (LM)