JAKARTA. Market uncertainty and sluggish demand force PT Surya Toto Indonesia Tbk (TOTO) to postpone its expansion plan.
Setia Budi Purwadi, Director of PT Surya Toto Indonesia Tbk, said that the global economic condition that has not improved is expected to put a halt to market demand. Moreover, the presence of coronavirus also disrupts export activities to China. For information, China is one of the countries that become the company's export destination. Of the company's total sales per September 2019 of Rp 400.40 billion, exports contributed 26.33%.
On the other hand, the property sector has not shown positive signs and the Eid holiday with a long holiday period has the potential to hold back domestic market demand.
For this reason, the manufacturer of sanitary ware products, fittings and kitchen equipment only prepares a capital expenditure (CapEx) budget of US$ 5 million for facility maintenance, said Setia Budi, as quoted by Kontan.co.id last week. (AM/AR)