Certainty Of Dividend Distribution, Gudang Garam Owned By Conglomerate Susilo Wonowidjojo Takes Care

Rupiah (Photo: Antara)

JAKARTA - PT Gudang Garam Tbk (GGRM) has opened its voice regarding considerations regarding the decision to distribute dividends or not in the future.

Gudang Garam's Director and Corporate Secretary, Heru Budiman, conveyed the company's decision not to distribute dividends for the 2023 financial year due to an increase in loan interest rates seen at the end of 2023 and entering 2024 and the United States (US) economy has not shown a clear direction.

"We are aware that future financial conditions, including those that are heavily influenced by American conditions, are still in turmoil, not showing a clear direction. It is estimated that it will not go down, it is estimated that it will not go up," he explained in the Public Expose Live 2024, Thursday, August 29.

Therefore, Heru conveyed that the issuer owned by the Conglomerate Susilo Wonowidjojo took a cautious stance by not distributing dividends and anticipating the impact of the foreign currency difference from the indication of an increase in loans after the dividend distribution for the 2023 financial year.

"It makes us take a precautionary stance not to divide dividends so that our loans will not increase, which if interest rates rise it can be an obstacle," he said.

On the other hand, Heru said that the company preferred to use all profits at that time to increase the company's capital so that the potential debt ratio could be reduced. Moreover, the company's revenue is experiencing contraction due to a decrease in people's purchasing power.

If the interest rate goes up, it will be an obstacle, if in 2024, which has not shown a decline so far, but will decrease, it has been distributed to more dividends that can be implemented. Instead of being behind, for dividends the debt has increased, the interest has increased, it's a dead card," he concluded.