Bentoel to boost cigarette production by 25 percent

JAKARTA (JP): Publicly listed PT Bentoel International Investama Tbk plans to increase its cigarette production by 25 percent to 10 billion cigarettes this year from 8 billion last year, a senior executive announced on Friday.

Bentoe's newly appointed finance director Henryanto Komala said on Friday that the higher production projection was made to meet the growing demand for its low tar and low nicotine cigarettes.

Two cigarette subsidiaries in Malang, PT Bentoel Prima and PT Lestariputra Wirasejati had started to raise their daily production of their clove-blended cigarettes, he announced after the company's extraordinary shareholders meeting.

PT Bentoel Prima produces Bentoel Mild, Bentoel Biru and Bentoel Merah cigarettes, while PT Lestariputra Wirasejati produces Star Mild and Prinsip cigarettes.

Henry said that last year, mild cigarettes contributed about 65 percent to the company's total revenue, although the earnings had yet to be announced.

He added that 90 percent of its total cigarette production were sold locally, while the remaining 10 percent were exported, mainly to the U.S. and Europe.

In the meeting, the company's shareholders agreed to change the composition of the executive board and the board of commissioners.

The new board of commissioners is led by Maurad Sofyan Arifin as the chief commissioner, with two members Harianto Mangkusasono and Frans Setiawan Widjaja replacing Robert Clive Appleby.

Yaya Winarno Junardy was named as the new president, replacing Henryanto Komala, Darjoto Setyawan as new vice president who has taken over the post from Roekmana Prawirasastra.

Henryanto was installed as the new finance director who replaces Yusuf Rahmadi, while Sun Alexander Yapeter occupies the marketing director position and Thedorus Sunarlin is production director. The last two are new positions in the company. (05)