Ramayana to pay dividend

Ramayana to pay dividend

JAKARTA: PT Ramayana Lestari Sentosa would be paying a dividend of Rp 30 a share from 2004 net profits, and the Indonesian retailer also plans to open new stores, an official at the company said on Monday.

Lukito Gozali, Ramayana's corporate secretary, said the total amount of the cash dividend the company would pay to shareholders represents 67 percent of the Rp 312 billion (US$32.5 million) net profit it booked last year.

The retailer -- which sells items including clothing, household products, toys and stationary -- paid a dividend of Rp 120 a share for 2003.

"We have a lot of cash (for the dividend) as the company is debt free," Gozali said.

He said the company planned to spend between Rp 400 billion and Rp 450 billion to open new stores, mostly in areas outside Java, such as Sumatra, Kalimantan and Sulawesi.

Around two-thirds of the retailer's more than 80 stores are located in Java.

The company, which caters to middle and lower income customers, is opening 10 new stores this year, in a move expected to help boost 2005 net profit to Rp 345 billion, Gozali said. -- Dow Jones