Gold and jewelry company PT Hartadinata Abadi Tbk will invest IDR40 billion as capital expenditure (Capex) by 2022. As of June 2022, the firm has spent approximately IDR15 billion.
“We will use the IDR40 billion Capex to develop machines and stores. Many people expect that gold price will increase due to inflation and due to supply of raw materials,” the company’s Finance Director Denny Ong said on June 22, 2022.
He said the company has initially focused on developing gold products and jewelry, standardizing the product and extending the market, cooperating with strategic partners, and increasing sales in its stores and online systems. Now, it will develop a strategy to boost sales this year by increasing the value of stakeholders.
Hartadinata Abadi – which brands include the Aurum Collection Centre (ACC), ACC Premium, Claudia Perfect Jewelry and Celine Jewelry – has targeted to open at least 10 new stores by the end of 2022. The company will have 82 gold and jewelry stores by July 2022.
“We expect to invest IDR3 billion to IDR4 billion in new outlets. Our revenue target is IDR6.8 trillion by 2022, with a net profit of IDR250 billion,” said CEO Sandra Sunanto. She explained that the company also invested in developing gold bullion products.
“Gold and jewelry will continue to dominate the company’s revenue as well as a potential expansion of pawnshop units because we are opening them in five provinces and developing them across seven regions,” Ong said. The company has a subsidiary firm of PT Gadai Hartadinata Abadi, which operates its pawnshop network in West Java, East Java, West Nusa Tenggara, East Nusa Tenggara and South Sulawesi.
According to Ong, expanding pawnshops will contribute revenue of between IDR80 billion and IDR90 billion. The pawnshops had reached 92 units by June 2022, and the company intends to increase pawnshop networks to 175 units by the end of 2022.
Ong said that the company is looking for loans from foreign banks with low-interest rates to finance the expansion.