JAKARTA. PT Buyung Poetra Sembada Tbk (HOKI) targets to increase its production capacity to 95 tons per hour until 2021. For this reason, HOKI is preparing a capital expenditure (CapEx) budget of Rp 70 billion this year.
Ferdinand Dion, Investor Relations of PT Buyung Poetra Sembada Tbk, believes that the funds will be fully absorbed for the construction of the company's new plant in Palembang. "The progress of the first phase of development has reached 35%. Until the end of this year, it is expected to be completed," Ferdinand was quoted as saying by KONTAN this week.
According to him, the construction of the plant will be carried out in two stages. The first phase, with a capacity of 20 tons per hour is targeted to be completed in December 2020. While the second phase, with the same capacity, is expected to be completed by the end of 2021.
If the plant in Palembang is fully operational, the company's total production capacity will reach 95 tons per hour.
With this additional capacity, HOKI plans to expand to new markets, including a number of regions outside Java and traditional markets. So far, HOKI has penetrated modern retail outlets such as Alfamart and Indomaret. (AM/AR)