Monday, June 18, 2012

JAKARTAIndonesia Today - Sungai Budi Group (SBG), through its units PT Tunas Baru Lampung Tbk (TBLA) and PT Budi Acid Jaya Tbk (BUDI), plans to invest Rp1.2 trillion this year, Investor Daily reported this morning.

SBG, controlled by Widarto, produces tapioca flour and rice flour. It is also the main player in palm oil industry and its derrivative products.
Sudarmo Tasmin, TBLA's vice president director, said SBG, through TBLA, allocates capital expenditure (capex) of Rp1 trillion for this year while Budi Acid, producer of tapioca flour, allocates capex of Rp200 billion.
He said TBLA's capex will be funded by internal cash (Rp600 billion) and bank loan (Rp400 billion). "We will in near term sign loan facility agreement with syndication of state banks," Sudarmo was quoted as saying.
He said TBLA will add 15,000 to 18,000 hectares area for planted sugar. The company also plans to build sugar mill in 2014. While Budi Acid plans to build glucose factory, tapioca mill with capacity of 30,000 tons per year and 2 bio gas power plants with capacity of 2x1 megawatts.
TBLA targets net profit to grow 19.3% to Rp500 billion this year and revenue to grow 7% to Rp4 trillion. While Budi Acid revised down its revenue target to Rp2.5 trillion this year, compared to initial target of Rp3 trillion. (

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