Indonesian poultry company invests hugely in growth

Major Indonesian poultry producer, Japfa Comfeed Indonesia (JPFA) is investing heavily, approximately Rp 1 trillion (US$102 million), to keep its revenue and profit increase in line with the industry’s 15% growth.

According to local media, the Jakarta Post, the company is eyeing bank loans instead of a bond issuance, a move they made last year, to raise capex funds.

“Although we are still considering the size of bank loans, we estimate that the proportion of bank loans to internal cash would stand at 50:50,” said Japfa’s senior vice president, Putut Djagiri, adding that the company possessed roughly Rp 800 billion in internal cash.

The company plans to pour the majority of its expenditure into their poultry business, which contributed over 80% to the company’s revenues. The company operates animal feed factories in addition to day-old chicken (DOC) farms.

Djagiri shared that the company was aiming to increase both revenues and profits by 15% this year in accordance to the expansion that the poultry industry would experience. Meanwhile, he added that this year, the poultry industry would remain robust as demand for poultry had risen due to its increased affordability.