STAA – Prepares IDR335 bn capex

The Capex of Sumber Tani Agung Resources (STAA) in 2023 will be used to build roads, facilities and infrastructure worth IDR235 bn, machinery and equipment maintenance worth IDR49 bn, vehicle and heavy equipment maintenance worth IDR63 bn and inventory worth IDR2 bn. This capex is also in line with STAA's target to increase the area of plantation land up to 60K ha by 2025 which is in the due diligence stage to several potential areas. The capex is down 51% yoy from last year's IDR692 bn. STAA has also begun to focus on downstream industries and product diversification in the form of olein which is expected to operate in 1Q24. To support this target, STAA is intensively completing the construction of the facility and is still in progress. For machine tenders and contractors, it has entered the finalization stage. Thus, it is expected that the portion of sales will change from CPO to olein products and will export more. (Source : Investor Daily)