JAKARTA. PT Dharma Polimetal Tbk (DRMA) has prepared funds of IDR 100 billion to support its business expansion plans by building 2 new factories.

Irianto Santoso, President Director of DRMA, said that the construction of the new factory is an anticipation of increased demand in the future, in line with the development of the national automotive industry which continues to grow positively. "Construction of this new factory is part of our efforts to grow the company organically," said Santoso to idnfinancials.com.

Later, the two new factories will be operated by the company's subsidiaries, namely PT Dharma Precision Parts (DPP) and PT Dharma Controlcable Indonesia (DCI). The new factory to be operated by DPP will be used for the new business, which is currently in the development stage. Meanwhile, the new factory, which will be operated by DCI, will be used for the development of a battery production line.

The construction of the two new DRMA factories will begin in February 2023. The company estimates that the two factories can operate commercially starting in 2024.

Apart from encouraging organic business growth, DRMA is also seeking non-organic business growth this year through acquisitions. Previously, the company had acquired PT Trimitra Chitrahasta, a manufacturer of car and motorcycle components, from Kuroda Group Co. Ltd. (KR/LM)