JAKARTA. PT Astra Agro Lestari Tbk (AALI) has prepared a capital expenditure (CapEx) budget of Rp 1.3 trillion for replanting. The budget is smaller than the budget prepared last year (Rp 1.5 trillion).
President Director of PT Asra Agro Lestari Tbk, Santosa explained that half of the CapEx budget will be used for replanting. "Because this is our long-term program and must not be stopped," he said.
Replanting must be done since many of AALI's plants aged more than 15 years old. Based on AALI data, as of October 2019, the number of AALI plants that are above 15 years old is 44.51%.
The remaining CapEx budget will be used for infrastructure, maintenance, and to increase plant capacity. (AM/AR)