Astra International is setting Capex budget worth IDR 40 trillion, focus on UNTR
Published on 03/04/2023 at 07:55 GMT+7 Reading time
PT Astra International Tbk (ASII), one of the biggest publicly listed companies in the automotive sector, is allocating Capital expenditure (Capex) budget of IDR 40 trillion (US$ 2.7 billion) to develop its business.
The plan will include developing its subsidiary companies in the assembly and distribution of cars and motorcycles, the sale and rental of heavy equipment, mining and related services, plantation development, financial services, infrastructure, and information technology.
Capex budget doubled
ASII's Capex budget for 2023 has increased significantly compared to previous years. The number doubled the company's Capex budget allocated in 2022. The company will be allocating most of the budget for PT United Tractors Tbk (UNTR).
Tira Ardianti, the Head of Investor Relations of ASII, as quoted from market.bisnis.com, said that the allocated Capex 2022 was recorded at IDR 26.4 trillion. Meanwhile, for 2023, the amount will be IDR 40 trillion, of which 60% will be channeled to UNTR.
"The remaining budget will be allocated for maintenance, so we do budget Capex routinely for our businesses in automotive, financial services, infrastructure, and also investment in new Astra businesses," Ardianti said.
UNTR explores nickel mining
According to Ardianti, much of the funds provided for UNTR will be used to replace the company's machinery and equipment and to fund UNTR's subsidiary in the mining service business, PT Pamapersada Nusantara.
Recently, UNTR expanded its business into the nickel mining sector with a transaction worth IDR 4.27 trillion, through its subsidiary PT Danusa Tambang Nusantara (DTN).
Through DTN, UNTR acquired two nickel mining companies, PT Stargate Pacific Resources, and PT Stargate Mineral Asia.
"They [UNTR] also signed a CSPA for the nickel business last year, the value was around IDR 4.3 trillion," Ardianti said.
Before the pandemic hits, ASII's Capex was recorded at IDR 21 trillion in 2019. The number later dropped to IDR 8 trillion during the 2020 pandemic.
In 2021, ASII allocated IDR 9.2 trillion for Capital expenditures and in 2022 the number reaches up to IDR 26.4 trillion.
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