JAKARTA (Yosefardi) – Plantation company PT BW Plantation Tbk (BWPT) will cut its capital expenditure (capex) for next year as the company is now facing the problem on cash flow for funding operation and debt ratio issue.
Kelik Irwantono, BWPT’s finance director, said the company will hold an internal meeting to discuss on budget for 2014. The capex for next year would be lower than this year’s allocation of Rp1 trillion,” he was quoted as saying by Bisnis Indonesia.
Kelik noted the company’s net gearing ratio now reaches its highest for the past few years.
In first half financial report, the company reported its operational cash flow only reached Rp34 billion, dropped 70% from Rp113 billion in the same period of last year. Debt ratio rose to 199.7% in second quarter of this year from 168.1% in first quarter.