JAKARTA. PT Nippon Indosari Corpindo Tbk (ROTI) is preparing the construction of its two new factories in Banjarmasin (South Kalimantan) and Pekanbaru (Riau). The factories will help fulfil demand in Eastern and Western Indonesia.
The company targets the operation of the two factories to start in the second half of 2020. "Groundbreaking is expected [to be started] this year," said Hadi Susilo, Head of Investor & Public Relations of PT Nippon Indosari Corporindo Tbk during public expose on Thursday (31/10).
The construction of the factory will mostly be funded using the company's CapEx budget next year, which is around Rp 400 billion. The source of the CapEx fund is the funds obtained during the company's rights issue in November 2017.
There are now 14 Nippon Indosari factories with a total production capacity of 5 million bread per day. 13 of them are located in Indonesia and one factory in the Philippines. With the two new factories in Banjarmasin and Pekanbaru, the number of factories will rise to 15.
Throughout the nine months of 2019, ROTI's net sales grew by 23.62% year on year (YoY). Meanwhile, profit attributable to the parent company has more than doubled to Rp 210.95 billion. (AM/AR)