JAKARTA - Amid its performance decline, PT Arwana Citramulia Tbk (ARNA) maintains its focus on expanding Plant 4C in Ogan Ilir, South Sumatra, after successfully intimating the operation of its latest plant, Plant 5C in Mojokerto, East Java.

According to Edy Suyanto, Chief Operating Officer (COO) of ARNA, Plant 4C will be ready for operation by at least the first quarter of 2025. This expansion is expected to boost the production capacity of its exclusive ceramic product under the brand ARNA Solitaire.

This product, designed to capture the upper-middle market, was first manufactured in Plant 5C in Mojokerto, which began to officially operate in March 2023. The expansion is triggered by the government policy that lowers a certain natural gas price (HGBT) to USD 6.

With this incentive, ARNA manages to cut off its production costs and turn it into an opportunity to enter the upper-middle class market. "It has always been dominated by import products," Suyanto added during the interview session with IDNFinancials last Wednesday (30/8).

On top of this, Suyanto also revealed that there has been a demand from loyal customers and distributors to offer a complete range of ARNA's products that cover all market classes. "It is so that distributors could provide a one-stop shopping of ARNA's products," he mentioned.

Up to this year, ARNA has recorded 5 manufacturing plants spread across Java and Sumatra. According to Suyanto, the locations become one of ARNA's advantage, as wide coverage is equal to minimisation of logistics costs through entensive distribution network.

"As of today, we have almost 33,000 outlets distributing our products across Indonesia, as well as 46 sub-distributors with complete infrastructures of their own," Suyanto revealed.

Although ARNA is facing a negative performance trend due to idle domestic ceramic market, it is determined to expand its factories and production. "We are capturing the market; we expand. We are not worried that this year's sales are not as great as last year," Suyanto claimed confidently. (ZH)