Intraco Penta Allocates Rp 100 B Capital Expenditure for 2018

INDUSTRY.co.id - Jakarta - The management of PT Intraco Penta Tbk (INTA) allocates capital expenditure (capex) funds worth Rp100 billion for 2018. Most of the capex funds come from internal funds of the company.

"The fund will be used to finance the construction of new facilities, business development and development of supporting infrastructure. That is done in line to achieve revenue target worth Rp 2 trillion this year," said Stepanus Ardhanova, Corporate Secretary INTA, in Jakarta, recently.

Stepanus said the company has various lines of business that are synergized in order to achieve the sales target this year. Approximately 80% of total sales target this year is still contributed from the sale of heavy equipment. The rest is revenue derived from mining services and fabrication and infrastructure support.

Stepanus explained that the recovery that occurred in the coal mining sector had an impact on the increase of heavy equipment sales of the company. In addition, the condition also continues to encourage growth in the heavy equipment rental sector.

"In addition, the growth of the infrastructure sector also boosted the infrastructure support business line. With the recovery of the coal sector, heavy equipment sales are targeted to grow 35% compared to the previous year," said Stepanus.

Nevertheless, Stepanus still cannot explain about the certainty of price increase. According to Stepanus, the increase in selling prices is highly dependent on the principal policy of Volvi CE heavy equipment in line with industrial demand and supply. (Abraham Sihombing)