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