Company Owned By Conglomerate Sri Prakash Lohia Distributes Bigger Dividend Per Share Than BCA's Hartono Brothers

Sri Prakash Lohia conglomerate. (Photo: Instagram @forbesindonesia)

JAKARTA - The textile company owned by Sri Prakash Lohia conglomerate PT Indorama Synthetics Tbk (INDR) will distribute dividends of IDR 940 per share from 2021 net income. This dividend per share is quite large, even beating the bank owned by the richest people number 1 in Indonesia, Michael and Budi Hartono. , namely PT Bank Central Asia Tbk (BBCA).

Robert Budi Hartono and Michael Hartono are the richest people in the country with a fortune of US$41.6 billion (around Rp. 615.68 trillion). The Hartono family controls the shares of BBCA, the issuer with the largest market capitalization on the Indonesia Stock Exchange, worth Rp. 912 trillion.

Meanwhile, Sri Prakash Lohia is the fourth richest person in Indonesia with a net worth of 6.6 billion US dollars (around Rp. 97.68 trillion). His wealth comes from Indorama, a textile and petrochemical group.

BBCA distributed cash dividends to shareholders of Rp145 per share. Meanwhile, the value of BCA's share dividend payments amounted to Rp. 17.9 trillion from the 2021 financial year. The dividend per INDR share is higher than BBCA's, which is Rp. 940 per share.

However, the total amount is only around IDR 600 billion, far below BBCA. The total dividend value differs greatly due to the difference in the number of shares listed on the Indonesia Stock Exchange. BBCA listed 123.27 billion shares on the IDX, while INDR only listed 654.35 million shares.

Indorama President Director Vishnu Baldwa said that Indorama's shareholders had approved the distribution of dividends of Rp. 940 per share, or around US$41 million from 2021 net income. This dividend distribution was approved at the company's Annual General Meeting of Shareholders (AGMS) Friday, June 27.

He said that the dividend amount was approved by the board of directors and shareholders because the company recorded the highest net profit in 2021, which is 84.5 million US dollars or Rp 1.2 trillion in 2021, from 6.23 million US dollars in 2020.

For information, INDR scored a net income of US$884.1 million in 2021 or equivalent to Rp12.6 trillion. This net income jumped 50 percent compared to 2020 of 589 million US dollars.

The company recorded an increase in gross profit of 307.65 percent from 31.8 million US dollars in 2020, to 129.7 million US dollars in 2021. With this increase, the company's net profit also increased to 84.5 million US dollars or Rp1, 2 trillion in 2021, from 6.23 million US dollars in 2020.