Astra Agro Lestari's 2004 profit jumps, plans expansion<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
Cashing in on robust crude palm oil (CPO) output and higher
\nprices in the international market last year, publicly listed
\nplantation company PT Astra Agro Lestari's profit in 2004 shot up
\nto Rp 800 billion (US$86.49 million).<\/p>\n
Last year's unaudited profit almost tripled the figure it
\nbooked the previous year of Rp 280 billion, the company's finance
\ndirector Julie Syaftari said recently.<\/p>\n
\"In 2004, production grew about 21 percent from 635,000 tons
\nto more than 765,000 tons,\" she said.<\/p>\n
Total sales for last year were above Rp 3 trillion, she added,
\nup from about Rp 2.5 trillion it recorded in 2003.<\/p>\n
The major Indonesian CPO producer almost doubled its exports
\nlast year to 331,767 metric tons, with sales to India nearly
\ntripling. India, the world's second most populous country,
\naccounted for some 43 percent of Astra Agro's total CPO exports.<\/p>\n
Prices were expected to weaken this year, said Julie, due to a
\nbigger flow of supply from Malaysia, the world's largest CPO
\nproducer, which would starting reaping results from its
\nreplanting efforts four years ago.<\/p>\n
\"The price in January already declined to $370 a ton from an
\naverage of $400 a ton last year,\" she said.<\/p>\n
To maintain its market, the company, 64 percent owned by
\nconglomerate PT Astra International, has targeted to further
\nboost production to reach 850,000 tons this year.<\/p>\n
Astra's finance director John Slack said that to drive
\nproduction, the company wished to increase its plantation areas.<\/p>\n
\"We're looking for land to have stock ready in six or seven
\nyears,\" he said. \"We could even purchase 100,000 hectares (of
\nland) this year.\"<\/p>\n
Astra Agro has already bought 6,000 hectares of land, which is
\nready for planting, in Central Kalimantan, and is in negotiation
\nto buy another 7,400 hectare plot on the island.<\/p>\n
It will also start planting 40,000 hectares of unused land in
\nits possession.<\/p>\n
The company has announced capital expenditure of Rp 350
\nbillion for this year, of which 30.9 percent would be allocated
\nfor expanding its CPO production and the capacity of its
\nprocessing mills.<\/p>\n
The company will allocate 28.7 percent of its spending for
\nwarehousing capacity, 18.1 percent for infrastructure and 17
\npercent for planting activities.<\/p>\n
Astra Agro controls around 205,000 hectares of plantations in
\nSumatra, Kalimantan and Sulawesi. More than 92 percent of its
\nsales revenue is derived from palm-based products.<\/p>\n
CPO output from the company accounts for over 7 percent of the
\ncountry's total 2004 production, estimated at 10.4 million tons.
\nIndonesia is the world's second largest producer of CPO.<\/p>",
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