PT Indo Rama Syntethics Tbk (INDR) allocated capital expenditure (Capex) as much as US$65 million to boost the production performance in 2016. That capex has been allocated to the factories in Purwakarta, West Java, Indonesia and Uzbekistan.
President Director of Indorama, Vishnu Baldwa, said that Capex was allocated to the factory in Purwakarta with the amount of US$20-25 million. “The factory has been operating since July 2016, and we allocated to it,” said he, in the company’s public expose, Jakarta.
For the remaining Capex, Baldwa said the company has allocated around US$40 million for one factory in Uzbekistan. They are optimistic with that Capex amount will boost the company’s revenue next year. The factories have been set for producing polyester which is a product advantage. So, the company’s revenue target will be much better in the future, compare with the previous.
Baldwa said the management is optimistic that the company’s revenue will increase until the end of 2016 with their product advantage. In the first semester 2016, the company’s revenue decreased along with the decrease of oil price in global market. The company’s net sales was noted at US$336 million, or it is decreasing compared with the same period in 2015 at US$351 million. The same condition has happened to the company’s profit which was noted at US$30 million in the first semester 2016, or decreased when we compare to the amount of US$33 million noted in the same period of 2015. (LK)