Astra International prioritizes core sectors with Rp 19 trillion capex remaining

PT Astra International Tbk is focusing its strategic efforts on three core business sectors: automotive, financial services, and mining/heavy equipment solutions. These sectors currently contribute approximately 90% of the company's total profit. Consequently, the company intends to prioritize capital expenditure (capex) and investments within these primary lines, though it remains open to non-core opportunities that meet specific investment criteria.

Astra has utilized approximately Rp 17 trillion of its planned Rp 36 trillion capex for 2026, leaving a remaining balance of Rp 19 trillion. A significant portion of the realized expenditure was directed toward the acquisition of gold mine PT Arafura Surya Alam by PT United Tractors Tbk. Additionally, Astra plans to increase its stake in PT Astra Otoparts Tbk through a voluntary tender offer at Rp 3,600 per share, an action requiring roughly Rp 858 billion to strengthen its automotive component ecosystem.

Separately, PT United Tractors Tbk reports optimism regarding coal production following an increase in its approved Work Plan and Budget (RKAB). The approved capacity has risen to 12.4 million tons, up from a previous 7.4 million tons. While the company aims to boost production and sales in the second half of 2026, it faces operational challenges due to El Nino weather patterns in Central Kalimantan, which may necessitate holding some inventory for sale in the fourth quarter.