JAKARTA. The lead of Astra Group, PT Astra International Tbk (ASII), prepares a capital expenditure (CapEx) worth IDR 19 trillion, which will be channelled to sectors that still have promising prospects in growth, including new and renewable energy (NRE).
Tira Ardianti, Head of Corporate Investor Relations, confirmed that the said allocated capex is higher than the 2021 realisation of IDR 9 trillion. It is due to impressive cash and cash equivalents observed by the end of 2021 of IDR 63.9 trillion. With this solid cash, the company will gain more flexibility to invest in businesses that will grant long-term revenue and profit growth in return.
The company realises that sectors with room for improvement yet low penetration in Indonesia are green economy investments, including renewable energy, and investments in the new economy, as it has shown a significant upturn these past years. The said sector has better potential to progress further in the future as digitalisation and technology advance.
“This solid financial position allows Astra to explore businesses that could promote sustainable growth in Astra group,” Ardianti explained last week, as quoted by Bisnis. (AM/ZH)