Sungai Budi, one of Indonesia’s largest agriculture-based manufacturers, has reduced its capital expenditure this year as the group's new plants construction nearing completion. (ID Photo/David Gita Roza)
Sungai Budi Sets $111m Capex Aside, as New Lampung Sugar Mill Nears Completion
BY :RAUSYAN FIKRY
JUNE 11, 2016
Jakarta. Sungai Budi, one of Indonesia’s largest agriculture-based manufacturers, has reduced its capital expenditure this year as the group's new plants construction nears completion.
The group set aside Rp 1.48 trillion ($111 million) this year, Rp 1.3 trillion of which is for listed palm oil and sugar producer Tunas Baru Lampung which is completing construction of a new sugar mill. The remainder would fund Budi Starch & Sweetener, specializing in producing tapioca and artificial sweetener.
Last year, Sungai Budi spent Rp 1.67 trillion for the capital expenditure.
"Next year the new sugar mill would start contributing to income," Sudarmo Tasmin, the vice president director of Tunas Baru Lampung, said on Friday (10/06), adding that the company target a test run for the mill by end of this year.
The sugar plant is capable to produce up to 120,000 metric tons of sugar, contributing an estimated additional revenue of Rp 1.4 trillion a year, Sudarmo said.
That would help the company to double revenue to Rp 10 trillion in 2017, from last year's Rp 5.3 trillion, Sudarmo said.
Also, Tunas Baru Lampung would acquire more oil palm plantation, preferably located near its existing plantation in South Sumatra, Central Kalimantan or West Kalimantan, Sudarmo said.
Meanwhile, Budi Starch & Sweetener would use most of it Rp 180 billion capital spending for acquiring tapioca plant in East Java. Today, the company have plants in Lampung, South Sulawesi and Central Java.