JAKARTA – PT Avia Avian Tbk (AVIA), a paint manufacturer owned by Hermanto Tanoko, is preparing capital expenditure of IDR 250–300 billion in 2025 for its third factory, currently under construction in Cirebon.

“For our production expansion, we are currently building our third factory in Cirebon, which is scheduled for completion by the end of 2025,” said Andreas Hadikrisno, Head of Investor Relations at AVIA, during an online public presentation on Wednesday (10/4).

Kurnia Hadi, AVIA’s Finance Director, added that the new factory would focus on producing water-based products. “To support growing demand,” he said.

In addition to expansion-related capex, AVIA is also budgeting for regular capital expenditure, to be allocated for upgrading production facilities, adding distribution trucks, installing tinting machines in stores, and maintaining IT infrastructure.

“Routine capex is around 2% [of revenue],” said Hadi. With AVIA’s 2024 revenue reaching IDR 7.5 trillion, routine capex is estimated at IDR 150 billion, bringing total potential capital expenditure to a maximum of IDR 450 billion for 2025.

For 2025, AVIA targets revenue growth of 6–10%, or 4–8% in sales volume terms. According to Andreas, the revenue target will be supported by both organic growth and inorganic growth through acquisitions and investments in other companies.

On the other hand, while some raw materials have been impacted by the rising US dollar, the prices of commodities used in AVIA’s production processes—such as crude oil—have declined. “So, there’s a substitution effect between forex and input costs,” Hadi explained.

With stable operational costs expected, Hadi added that AVIA is targeting a profit margin in 2025 equal to this year’s level of 22.3%. (ZH)