JAKARTA – In 2024, PT Boga Mulia Raya Tbk (KEJU), the Prochiz cheese manufacturer, will set up a capital expenditure (capex) budget of 80% higher than last year’s allocation.

According to the Annual Report of 2023 of KEJU, the total amount of capital expenditure last year reached IDR 11.41 billion. In other words, this year’s capex will reach approximately IDR 20 billion.

According to Jeffrey Halim, Director of Finance of KEJU, this year’s capex will be focused on capacity improvement. “This capacity increase is in line with increasing demand for a certain product category,” he added.

According to Indrasena Patmawidjaja, President Director of KEJU, or amicably known as Dede, based on the management’s prediction, the market that will show rapid growth is non-retail market, or food service segment.

“Retail segment will also grow, albeit not as fast as food service,” he said during the 2024 Annual Public Expose of KEJU today (24/4). Patmawidjaja also claims that the company aims for moderate growth for retail business, limited to single digit. It is due to the change of consumer behaviour, which now consumes a lot less cheese at home, but in restaurant outside home.

In addition, Halim will invest more in machineries that will support cost production efficiency. “Especially for mitigating dollar inflation,” he added.  KEJU is known to still rely on imported goods.

Furthermore, in order to face inflation and global financial instability, KEJU will make attempt on efficiency of raw material supply through its parent company, PT Garudafood Putra Putri Jaya Tbk (GOOD), as well as long-term supply contract to maintain the stability of raw material price.

“From internal aspect, we are currently trying to rejuvenate [product] formula that will improve efficiency of production cost,” added Ari Sutanto, Director of KEJU.

It is worth mentioning that KEJU aims to secure significant growth in its performance in 2024. This year, Patmawidjaja is eyeing top-line to double compared to the revenue in 2023. (ZH)