Cahaya Sakti to increase production

JAKARTA (JP): PT Cahaya Sakti Furintraco, which claims to control 60 percent of the panel furniture market in Indonesia with its Olympic brand, plans to expand its manufacturing capacity by up to threefold.

The company's president, Au Bintoro, told journalists on Saturday that his company's 15-hectare production facilities in Bogor, south of here, could no longer accommodate the growing demand.

He said his company could supply only 80 percent of all domestic demand addressed to it and only 30 percent of all foreign demand.

Bintoro did not specify his company's production capacity but said that his company produces over 1,000 models of furniture, from kitchen cabinets to bedroom accessories.

"We cannot detail our production capacity with the number of furniture but I can give you our annual sales," Bintoro said.

Last year, the company's sales reached Rp 100 billion (US$45 million), 20 percent of it being from exports, while its net profit was recorded at Rp 11 billion.

Bintoro said the new expanded production facilities will occupy some 70 hectares of land. However, he decline to disclose the amount of investment needed for the expansion.

To finance its expansion program, Bintoro said, the company plans to float shares on the Jakarta Stock Exchange next year. (rid)