Timah sets Rp 1.4t for
expansion in 2013
Tassia Sipahutar, The Jakarta Post | Business | Fri, April 19 2013, 12:53 PM
The country’s largest tin miner, PT Timah (TINS), is setting aside Rp 1.4 trillion (US$144 million) of its internal funds for its spending budget this year as the company plans to acquire two coal mines in South Sumatra and East Kalimantan provinces, and expand its operations to Myanmar.
About 30 percent or Rp 420 billion of the budget would be allocated for its routine operations, while the rest would be used to finance its expansion and development projects, according to Timah president director Sukrisno.
“Funds for the budget will come from our own cash. We also have plans to release some of our assets to generate funds. Just in case we need more, we already have several standby loans that we can use,” he said in Jakarta on Thursday.
Sales of the assets, such as land and buildings, are scheduled to take place in the second half of this year and are estimated to generate Rp 1 trillion. As of December 2012, Timah had Rp 670.41 billion in cash and cash equivalents.
This year, the state-owned Timah is looking to seal acquisition deals for two brownfield coal mines in East Kalimantan and South Sumatra, with 40 million metric tons and 60 million tons of coal reserves, respectively. At the moment, Timah has one coal mine in Banjar, South Kalimantan, with an annual production volume of 1 million tons.
After the acquisitions, the company’s annual coal production volume will increase to 4 million tons as each new mine will be able to produce 1.5 million tons per year. Sukrisno declined to reveal the acquisition costs, saying the process was ongoing and that Timah expected it to be completed very soon.
For its expansion to Myanmar, Timah has secured a 10,000-hectare tin concession area in Pubyien-Tamok, Tanihary, Myanmar. It will establish two subsidiaries to operate the tin mine and to market the tin products, and it plans to build a smelter in the country.
Timah was currently selecting future partners to form the subsidiaries as they would not be allowed to operate as 100-percent foreign-owned firms, according to Sukrisno.
“We have received a list of potential partners from the Indonesian Embassy in Myanmar and have found two suitable candidates. We are going to send a team there soon to conduct studies,” he said, adding that Timah would hold majority ownership in the subsidiaries.
Timah is allocating $18 million of the spending budget for the development of the concession area and Rp 70 billion to Rp 80 billion for the smelter.
This year will also see Timah, a publicly listed company, begin the development of an industrial zone in Tanjung Ular, Bangka regency, Bangka Belitung Islands province. In the first phase, Timah would work on a 100-hectare area while awaiting an additional 500 hectares of land as promised by the Bangka regent, according to Sukrisno.
In 2013, Timah hopes to maintain a production volume of 30,000 tons of tin, around the same volume as last year.
Meanwhile, during an annual shareholders’ meeting in Jakarta on Thursday, Timah’s shareholders approved a Rp 215.79 billion dividend payment proposal, in which each shareholder will receive Rp 42.87 for every share they have.
The proposal is 51.9 percent lower than the previous year due to lower profits. In 2012, Timah saw its net profits fall 52 percent to Rp 431.57 billion and revenues decrease 10.6 percent to Rp 7.82 trillion from 2011. It attributed the lower results to the falling tin price.
Timah’s shares closed at Rp 1,380 apiece on Thursday, unchanged from the day before.
Timah sets Rp 1.4t for expansion in 2013 | The Jakarta Post
Kalbe Farma to boost production
with new milk plants in
W. Java
The Jakarta Post, Jakarta | Business | Sat, July 27 2013, 1:24 PM
Publicly listed pharmaceutical company PT Kalbe Farma will construct two milk plants in West Java to double its milk production.
One of the plants will produce liquid milk and will be built in the fourth quarter of this year on 8 hectares of land in Sukabumi, West Java.
The company would spend around Rp 150 billion (US$14.55 million) on the first plant using its internal funds, Kalbe Farma finance director and corporate secretary Vidjongtius said on Thursday.
However, he could not provide data on the plant’s production capacity.
The second plant will produce powdered milk to double its current production capacity to 25,000 tons of powdered milk per year.
Kalbe will build the second factory in the beginning of next year in Cikampek, Karawang, West Java, with investment between Rp 200-300 billion, said Vidjongtius.
Construction works for both plants will be completed within a one-year period.
“A milk factory [is the kind of factory that] can start operating immediately [because it doesn’t need certification],” Vidjongtius said.
Kalbe Farma produces more than 800 products from four different product categories comprising nutrition, counter drugs, milk and prescription drugs.
Some of its products are Extra Joss energy drink, Hydro Coco coconut drink, Diabetasol diabetic milk, Prenagen milk for pregnant women and Milna baby food.
Vidjongtius said all four types of products contributed fairly to the company’s revenues, around 24-25 percent each. Kalbe started to export some of its products to some Southeast Asian countries earlier this year, said Vidjongtius. In June, Kalbe began exporting Diabetasol — milk for diabetic patients — and Zee — milk for teenagers — to Myanmar, he said.
The company is also exporting Extra Joss, Diabetasol and Hydro Coco to the Philippines.
But its revenues from overseas sales “would not contribute much” to the company’s income just yet.
“Usually it takes three years to know whether or not our products would survive [in an overseas market],” he said, adding that Kalbe was studying the possibility of entering the Vietnamese market.
Kalbe is aiming for an 18-percent growth this year from a year before, both in revenues and profits.
In 2012, Kalbe enjoyed Rp 13.6 trillion in revenue. “We expect [to get] Rp 16 trillion in revenues this year,” said Vidjongtius.
Commenting on the weakening rupiah, he said that Kalbe would not need to increase the prices of its products, although 90 to 95 percent of its ingredients were imported, because it had secured stocks of raw ingredients as well as cash in US dollars that would be enough for the next three to four months.
“We already increased [our] prices earlier this year by around 2-3 percent, which would be enough for one year,” he said.
Shares in Kalbe (KLBF) closed at Rp 1,360 apiece on Friday, drop by 2.86 percent from the previous closing. (nai)
http://www.thejakartapost.com/news/2013/07/27/kalbe-farma-boost-production-with-new-milk-plants-w-java.html
Indofarma to build new
factory to boost production
Tassia Sipahutar, The Jakarta Post, Jakarta | Business | Sat, March 09 2013, 11:54 AM
State-owned pharmaceutical firm PT Indofarma (INAF) will build a new factory in the first half of this year to boost production capacity.
The new factory will be located in the publicly listed company’s production complex in Cibitung, West Java. It will consist of several facilities, including beta-lactam and non-beta-lactam facilities, according to Indofarma accounting manager Dewi Fitrianti.
Beta-lactam antibiotics are medications used to treat bacterial infections. The new establishment, which will start operating in the first half of 2014, is expected to increase Indofarma production capacity by threefold.
The company currently operates one factory only, which annually produces around 2.3 billion non-beta-lactam tablets, 258 million non-beta-lactam capsules, 419 million beta-lactam tablets, 75 million beta-lactam capsules and other products.
Dewi said that construction of the new factory would cost a total of Rp 200 billion (US$20.64 million), with some of the construction funds provided through bank loans from state-owned Bank Mandiri and the rest from
internal cash.
Besides a new factory, Indofarma will renovate its herbal products unit, expand its children’s medical equipment business and improve its research and development unit. “Our children’s medical equipment business is still quite small. Meanwhile, better R&D [research and development] will hopefully enable us to accelerate new product development,” she added.
To finance its expansion projects, Indofarma will sell debt papers, either medium-term notes or bonds, in the second half of the year. It aims at generating between Rp 100 billion and Rp 200 billion from the sale. The total capital expenditure funds figure for 2013 is set at Rp 145 billion.
According to Indofarma president director Djakfarudin Junus, the company is looking to record at least a 25 percent increase in total sales to Rp 1.44 trillion by year-end. “We will improve our distribution lines to ensure longer product availability, enhance our products quality and optimize our drugs market in 2013,” he said during a telephone interview.
The company recently published its 2012 financial report, which showed a slight 4 percent fall in total sales to Rp 1.16 trillion from a year before. Dewi said the decline was a result of Indofarma’s new policy to focus its sales on high-margin products and reduce those of low-margin ones.
In line with lower sales, costs of goods sold also declined, falling 17.4 percent to Rp 159.82 billion. In the end, Indofarma’s net profits surged to Rp 42.38 billion, 14.8 percent higher than 2011.
As of December 2012, Indofarma’s total assets amounted to Rp 1.19 trillion. Its liabilities and equities stood at Rp 538.52 billion and Rp 650.1 billion, respectively. Its shares closed at Rp 335 apiece on Friday, down 1.5 percent from Thursday.
http://www.thejakartapost.com/news/2013/03/09/indofarma-build-new-factory-boost-production.html
