JAKARTA. PT Samator Indo Gas Tbk (AGII) has prepared capital expenditure (capex) budget of up to IDR 600 billion to build a new production plant in order to pick up its expansion plan this year.

Based on the information disclosure issued last week, AGII has started the construction of a new factory in the Batang Integrated Industrial Zone in Central Java this March. The allocated capex is set to IDR 500 to 600 billion, which will be used to promote the factory construction that is targeted for completion at the end of 2024.

Along with this factory construction, AGII plans to branch out its gas distribution business line to serve other tenants in the industrial zone, on top of its main focus of distributing gas for medical needs. For the record, the Batang Integrated Industrial Zone is projected to be the area in which the electronic vehicle industry thrives.

Through the optimisation of operations and strategic commercial initiatives. AGII aims to secure revenue growth of twice the national gross domestic product (GDP) within the next 2-3 years, as well as targeting a double-digit net profit margin. (AM/ZH)