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JA Wattie Looks to Finance Expansion
Indah Handayani | January 26, 2012

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Plantation firm Jaya Agra Wattie is seeking Rp 1 trillion ($112 million) in financing this year to help fund its four-year expansion plans, the Indonesian company’s finance director said on Wednesday.

Bambang Ibrahim told reporters that Jaya Agra Wattie (JA Wattie) is studying options to secure the remainder of its financing needs for a plan that includes the acquisition of new plantations.

The company last year earmarked a Rp 1.5 trillion plan to expand its crude palm oil and rubber plantation holdings. It raised more than one-third of that, Rp 566 billion, from an initial public offering in May.

The company is targeting an increase of its total plantation area to 100,000 hectares from its current 68,000 hectares, JA Wattie’s president director, Harijadi Soedarjo, indicated last year.

Bambang said options being considered include bank loans, a bond issuance, or both.

“We expect to get the financing source this year,” he said.

For its regular capital spending this year, JA Wattie has set aside Rp 490 billion for the maintenance of current plantations and construction of a crude palm oil processing plant.

Regarding its financial performance, Bambang predicted the company would see a 137 percent increase in net income to Rp 190 billion in 2011. The company posted Rp 80.1 billion in 2010.

Bambang also forecast a 54.8 percent increase in total revenue to Rp 640 billion last year from 2010. Rubber was the biggest contributor to the company’s sales.

JA Wattie’s shares were unchanged at Rp 405 on Thursday.

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