However, the net profit of the subsidiary of the nation`s flag carrier Garuda Indonesia fell from US$57.7 million in 2016 to US$50.9 million in 2017, the company`s Chief Executive Iwan Joeniarto said here on Monday.
The net profit was higher in 2016 because of profit in Extra Ordinary Transaction of Employee Benefit Obligation (EBO), Iwan said after an annual shareholders` meeting of the company.
Without EBO, the net profit of the company in 2017 was 15.3 percent higher than US$44.2 million in 2016, he said.
"GMF also recorded a strong growth of 22 percent in assets to US$539.2 million in 2017," he added.
Iwan said PT GMF paid dividend at US$10 million or only 20 percent of its net profit in 2017 as the company needs additional fund for expansion.
"Currently the company is growing fast, therefore, it needs large additional capital of more than US$100 million this year to finance its business expansion," he said .
The company raised Rp1.1 trillion from its recent initial public offering (IPO) and 60 percent of the fund would be used for investment , 25 percent for working capital and 15 percent for refinancing.
Iwan said 40 percent of the IPO fund for working capital and refinancing had been used, leaving only the 60 percent to be used for investment to be used later this year.
Investment in 2018 will increase sharply by almost 400 percent this year to increase the "international footprint" of the company and to expand its capacity.
The large investment in 2018 is expected to not only increase income in the coming years but also to expand its aircraft maintenance market.
In 2018, the company hopes to post an increase of more than 15 percent in income with net profit rising more than 10 percent.
(T.SYS/B/H-ASG/A/H-YH)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
