Gudang Garam to pay Rp 1.5T in dividens

JAKARTA. Publicly listed cigarette maker PT Gudang Garam (GGRM) will be paying out Rp 1.5 trillion (US$1.5 billion) in dividends, a decrease from the Rp 1.9 trillion it disbursed in 2011.

The company's director, Heru Budiman, said the drop in the dividend amount was a result of a decrease in profits. Besides that, the company's capital expenditure has risen.

"The company needs funds to increase cigarette production," Heru said on Saturday during a shareholders' meeting in Kediri, East Java.

He added that Gudang Garam was adding more machines in order to increase productivity.

Heru said the cigarette maker would be developing its mild cigarettes, Surya Pro Mild, but would still maintain its clove cigarettes.

Gudang Garam has two kinds of clove cigarettes, machine-rolled cigarettes and hand-rolled cigarettes. (The Jakarta Post)