SMR Utama allocates IDR 210 billion to its CapEx
JAKARTA – PT SMR Utama Tbk (SMRU) had set the budget for its capital expenditure (CapEx) to IDR 210 billion, aiming to realise the entire amount in order to boost this year’s performance. Corporate Secretary of SMR Utama, Arief Novaldi, conveys the news in the information disclosure, quoted today (2/9).
“The estimated portion comes from subsidiaries, which might realise 50% of the 2021 budget,” Novaldi reveals further.
According to Novaldi, the company had realised approximately 26% of the total CapEx budget, amounting to IDR 54.60 billion. This step acts as a measure applied by the company to fix its performance in 2021 as it had suffered from a downturn after the COVID-19 pandemic hit last year.
At the beginning of the pandemic in 2020, most countries went into lockdown to prevent the further spread of the virus, leading to the low demands for coals, including from SMRU’s primary customers, PT Berau Coal and PT Gunung Bara Utama. However, recently, SMRU’s performance in the first half of 2021 improves. The production, sales, and purchases recover as several countries succeed in controlling the COVID-19 pandemic.
It is further mentioned that the performance enhancement would include several steps. They are boosting the realisation of the budgeted CapEx, applying cost efficiencies in service and maintenance of heavy equipment and workforce, and implementing excellent operation to reduce costs spent due to work accidents. (LK/ZH)