Pan Brothers (PBRX) Strategically Allocates IDR 78 Billion for Capital Expenditure

February 23, 2024, 06.30 PM | Reporter: Sabrina Rhamadanty

ILUSTRASI. Workers are completing the production of masks and personal protective equipment (PPE) at the PT Pan Brothers Tbk Textile Factory, Banten, Monday (20/4/2020). PT Pan Brothers Tbk is capable of producing 1 million reusable or washable masks and is guaranteed to use domestic raw materials. For PPE, Pan Brothers produces washable hazmat suits and disposable hazmat suits. Unlike masks, some of the raw materials for these two types of hazmat still rely on imported materials. City News/Angga Bhagya Nugraha

CORPORATE STRATEGIC - JAKARTA. Textile issuer PT Pan Brothers Tbk (PBRX) has allocated a capital expenditure (capex) budget of around US$ 3 million to US$ 5 million or equivalent to Rp 78.09 billion (exchange rate Rp 15,619.35 per USD) in 2024. This value is the same as the capex budget allocated by the company in 2023.

“The capex is more or less the same as the previous year, which is around US$ 3 million to US$ 5 million,” revealed Elysia, Corporate Secretary of PBRX when contacted by Kontan, Thursday (22/02).

Then, as a company engaged in the textile sector, approaching the Eid period, she revealed that PBRX saw an increase in local sales, although PBRX's sales are still dominated in the export sector.

“The impact of the increase in domestic demand related to the holiday on our overall operations is relatively small. However, demand in the domestic market increased by 10-20% for our production intended for the domestic market,” she added.

This year, Elysia also revealed that PBRX has plans to diversify products, whose quality is still the same as in recent years, that is, diversification into premium/high-value products.

For the target, the revenue and profit targeted by PBRX, she revealed, are more or less the same as in 2023.

“Considering the national political conditions post-election and global political conditions, we estimate that this year will be more or less similar to 2023,” she said.

This year, PBRX sees the development of the textile industry domestically as quite positive despite the still rampant issue of textile imports or second-hand clothes (thrifting).

“The influence of second-hand clothes certainly has an impact on the domestic textile industry. The existence of this issue brings a big impact on the domestic market which can reduce the development of the domestic TPT industry,” she revealed.

Elysia added, that regarding this phenomenon, a joint effort from the industry and the government is needed to face this. On one hand, the industry needs to improve quality, diversify products, and efficiency in production and marketing.

“But on the other hand, government support plays a very crucial role. Especially considering the high absorption of labor in the Textile and Textile Product (TPT) industry which contributes positively to the country's economy and the improvement of labor skills in achieving the vision of Golden Indonesia,” she concluded.