Astra Agro Lestari Already Uses Capex 30-40 Percent This Year

Vice President Investor Relations & Public Affairs AALI Fenny Sofyan. (Photo: Doc. Antara)

JAKARTA - The Astra Group of the palm oil plantation sector PT Astra Agro Lestari Tbk (AALI) has used capital expenditure (capex) of 30-40 percent of the total capex worth IDR 1.2 trillion- IDR 1.4 trillion throughout 2024.

"It has been used 30 percent to 40 percent of total capital expenditure (to date)," said AALI Vice President Investor Relations & Public Affairs Fenny Sofyan after Media Day at Astra Tower Jakarta, quoted from Antara, Wednesday, September 18.

He explained that around 60 to 70 percent of capex this year will be allocated as replanting capital, while the rest will be used to carry out maintenance.

"Why is (capex) a huge drop? Because in 2021 or 2022, we have purchases and improvements in infrastructure. Change cars and so on, which have been delayed in two years of the pandemic. So, it's a bit high. shopping, now this year it's actually normal again," said Fenny.

As of the first semester of 2024, AALI recorded a net profit of IDR 501.04 billion, or an increase of 26.64 percent year on year (yoy) compared to IDR 367.57 billion in the same period the previous year.

The company's increase in net profit was supported by revenue growth of Rp. 10.31 trillion, or an increase of 9.83 percent (yoy) compared to the same period the previous year.

On this occasion, Fenny explained that if the rainfall was high along with the La Nina weather phenomenon, the productivity of plants in oil palm plantations would increase.

However, he continued, high rainfall can also cause the company's operations to be hampered in line with the plantation water level above the standard.

The Meteorology, Climatology and Geophysics Agency (BMKG) issued an early warning for drought at the Alert, Alert and Alert levels in several parts of Indonesia in line with signs of the La Nina phenomenon which is currently still not visible in the country.