For the purpose the company plans to increase its capital expenditures by 44.4 percent to US$1.5 billion, he said.
"The large investment is for developing the company`s businesses from automotive to finance service," he said.
He said the fund would not totally come from internal cash supply but also from bank loans. "Most of it comes from the internal cash supply and other from bank loans," he said.
He said around 40 percent of the fund would be used for infrastructure development projects such as power plants in East Kalimantan and toll roads while the rest for corporate business lines.
Until now Astra International has been operating in six sectors namely automotive, financial service, heavy equipment and mining, agro-business, information technology, infrastructure and logistical network.
He said this year Astra International would add a new automotive plant for Astra Daihatsu Motor (ADM) in Suryacipta Industrial Zone in East Karawang, West Java.
The new plant is expected to supply components to upstream sector, he said.
"With the plant to sit on a 81 hectare land it is expected quality products will come from it along with productivity and comfort," Astra Daihatsu Motor president director, Sudirman MR said recently.
He also said he hoped the new plant could become a place for transfer of technology from Japan to Indonesia.
He hoped it would also help increase production to meet increasing demand.
(T.KR-SSB/H-YH/O001)
Editor: Priyambodo RH
Copyright © ANTARA 2011
