AKR readies Rp1.3 trillion in capex

IDX-listed PT AKR Corporindo sets aside Rp 1.2 trillion to Rp 1.3 trillion (US$132 million to US$143 million) in capital expenditure this year, primarily allocated for the ongoing construction of fuel terminal and tankers.

?About US$100 million will be used to complete the construction of our ongoing projects. We plan to complete the development of fuel terminal and tankers, which we have started in 2010, later on this year,? said Director Suresh Vembu as reported by Bisnis Indonesia.

Suresh added that the capex allocation may still be increased, in particular in relation with the company?s plan to become the majority stakeholder at PT Jabal Nor, having spent Rp 24.29 trillion for 33.5% stake in the company last month.

AKR plans to make Jabal Nor the operator of its hauling roads and ports for coal in Tapin regency, South Kalimantan.

Suresh said the company expects revenue to hit between Rp 21 trillion to Rp 22 trillion this year. (*)