Toto to increase authorized capital

JAKARTA (JP): PT Surya Toto Indonesia, a manufacturer of sanitary wares and plumbing fittings, will increase its authorized capital from Rp 40 billion to Rp 150 billion, says the company's president, Mardjoeki Atmadiredja.

He told reporters after an extraordinary meeting of the company's shareholders here on Saturday that the planned increase in the authorized capital is aimed at anticipating its plan to issue bonus shares to shareholders.

According to Mardjoeki, the Investment Coordinating Board (BKPM) has approved the company's plan to increase its authorized capital.

He explained that a holder of five existing shares will be entitled to three bonus shares.

Apart from bonus shares, which will be issued after the company gets approval from the Ministry of Justice, the company will also pay a dividend of Rp 100 on July 27 for each of the existing shares for its 1993 operations.

Mardjoeki said Surya Toto's after-tax profit, which decreased from Rp 13.2 billion in 1991 to Rp 3.2 billion in 1992, rebounded to Rp 10.5 billion in 1993.

He acknowledged that the after-tax decrease in 1992 was because the company recruited some 500 inexperienced workers to work in its new factory, which resulted in high production costs.

The sales of the company, which exports 36 percent of its production to 19 countries, increased from Rp 53.6 billion in 1992 to Rp 81.1 billion in 1993.

Mardjoeki said that this year the company will continue selling 64 percent of its production on the domestic market because increased construction of apartments and housing estates in the country will raise demand for sanitary wares.

The company's total assets inched upward from Rp 133 billion in 1992 to Rp 135 billion in 1993.

Surya Toto, established in 1977, operates two sanitary ware factories which employ 2,345 workers, including 10 expatriates from Japan.

The company is 26.3 percent owned by Toto Ltd. of Japan, 25.1 percent by PT Suryaparamitra Abadi, 25.1 percent by PT Multifortuna Asindo, 5.7 percent by PT Intimitra Sejahtera, 4.4 percent by Kashima Trad. Co. Ltd. of Japan, and 13.4 percent by the investing public. (03)