JAKARTA. PT Indofarma (Persero) Tbk (INAF) estimates that it will only absorb around Rp 15 billion of its capital expenditure (CapEx) budget by the end of this year, 15% of its total CapEx budget of Rp 100 billion so far this year. This is due to the delay in the formation of joint ventures for a number of projects.
Herry Triyatno, Director of Finance & Human Capital at INAF, said that as of August 2019, the company has only absorbed around Rp 10 billion of its CapEx budget.
This happened since the company has delayed the formation of joint ventures (JVs) for nine of its projects this year. Some of the projects including the development of oncology products and disposable medical materials. Harry estimates that a new joint venture will be formed in 2020, for the herbal/natural extract segment. The company has a natural extract factory in Cibitung, West Java, with a production capacity of around 48 tons per year.
"At the moment we are focusing on SBU [strategic business unit], so we did not establish a JV," he said.
In addition to improving its sales portfolio, the company also improved its financial structure in order to gain more profit this year. The company will soon request a debt reprofiling to banks in the near future. Until the end of this year, the company is optimistic that it can record sales of Rp 1.70 trillion and net profit of Rp 6.22 billion in 2019. (AM/AR)