Astra Agro to sell non-core businesses

Astra Agro to sell non-core businesses

M. Taufiqurrahman, The Jakarta Post, Jakarta

Shareholders of publicly-listed crude palm oil producer PT Astra Agro Lestari decided on Monday to proceed with a plan of divesting the company's non-core businesses.

Company vice president Benny Tjoeng told reporters after an ordinary shareholders meeting that the divestment process was undertaken for the good of the company. He said that Astra Agro would focus on the palm oil business.

"As of September this year, all 13 companies which aren't related to palm oil will be divested," he said, adding that the companies were worth about US$35 million.

The shareholders also approved a proposed dividend of Rp 60 per share for the financial year 2002.

In the first quarter of 2003, the company earned Rp 98.4 billion in profit, a 90.6 percent rise from Rp 51.6 billion over the same period last year.

The increase in profit was mainly attributed to the rise in the price of crude palm oil (CPO) and its derivative products. The average price of CPO in the first quarter of 2003 stood at Rp 3,570 per kilogram, a 24,2 percent increase compared to Rp 2,875 over the same period last year.

For 2003, the company projected CPO production to increase by 5 percent to 600,000 metric tons compared to 543,634 metric tons last year.

The shareholders meeting also chose to retain the company's current management team.