PT Semen Padang is able to get the loan of more than IDR1 trillion (US$107m) to finance the development of new facility as the financial condition of the cement company is improving. Semen Padang’s President Director Endang Irzal said that the current debt to equity ratio is 53:47.
"With such ratio we will be able to get the loan of more than IDR1 trillion. To get such loan, however, we have to wait for the assessment on the new facility development plan," he told Bisnis Indonesia before a seminar in Jakarta yesterday. With the present condition, he said, some creditors are interested to provide some new loan.
He said that the unit of Semen Gresik aims to book IDR2.7 trillion of sales this year, compared with IDR2.1 trillion last year. To meet the target, he said, Semen Padang plans to expand the market to the areas providing higher profit. The company aims to book IDR212 billion net profit this year, compared with IDR140 billion last year.
The Finance Director of Semen Padang Epriliyono Budi added that the company will spend IDR230 billion of internal cash reserve for the capital expenditure. As much as IDR80 billion will be used to finance the packaging facilities, and the rest will be used to finance the routine cost.
The total short term liabilities of the company was IDR300 billion. Irzal assumes that Semen Padang’s net profit will increase by 60.55 per cent this year to IDR368 billion from IDR229 billion last year.
The company is with the production capacity of 5.24 million tons per annum from its four facilities Indarung II and III (660,000t each), Indarung IV (1.62Mt) and Indarung V (2.3Mt).