JAKARTA - PT Erajaya Swasembada Tbk (ERAA), a cell and accessories distributor, has realised approximately IDR 713 billion of its capital expenditure (capex) until the third quarter (Q3) of 2023.

Hasan Aula, Vice President Director of Erajaya Swasembada, said that most of the capex realisation went to retail segment expansion. “We may not absorb more of the capex until the end of this year, as most of the projects have been concluded,” he explained in an interview with IDNFinancials today (17/11).

According to Aula, the capex is allocated for outlet expansion and reinforcement of distribution and sales network of the company. Aside from Java, ERAA aims to expand its outlets to Eastern Indonesia.

As of Q3 2023, Eastern Indonesia contributed 10% of total revenue of ERAA, equal to IDR 4.3 trillion out of the total IDR 42.81 trillion. Meanwhile, Central and Western Indonesia both generated sales of IDR 24.51 trillion and IDR 14.03 trillion, respectively.

In terms of product, mobile phone brought in revenue of IDR 34.57 trillion, followed by operator products of IDR 1.96 trillion, computer and other electronic devices of IDR 1.18 trillion, and accessories of IDR 5.09 trillion.

As of Q1 2023, this issuer recorded 1,849 retail outlets under its belt, as well as 95 distribution centres and 67,100 resellers.

Smart-home product market

In the meantime, the company continues to improve its smart-home product sales to support revenue growth. The consumer trend that leads to popularity of internet of thing (IoT) devices has reportedly driven sales of smart-home products, including electronic devices, lamp, and audio/video devices.

It is said that the growth of smart-home product sales could reach 10% of total revenue of the company. This number, Aula believes, will continue to increase as the consumers’ demands grow, especially in relation to their lifestyle. (LK/ZH)