Jakarta. Astra International (ASII), a leading business conglomerate, intends to propose a dividend payout amounting to Rp 21 trillion ($1.3 billion), representing 62 percent of the company’s net profit in 2023.

This proposal is founded on the robust financial position of the company, which operates across diverse sectors including automotive, coal mining, heavy machinery, financing services, plantation, and infrastructure.

CEO of Astra International, Djony Bunarto Tjondro, announced that the dividend payment amounts to Rp 519 per share and will be presented during the annual shareholders’ meeting scheduled for April 30.

"The board of directors' dividend proposal is based on the exceptionally favorable business performance and the elevated coal prices witnessed in the first half of 2023. These factors reflect a post-pandemic recovery trend, enabling the company to redistribute a portion of our surplus capital to shareholders," Djony said in a statement on Sunday.

Astra recorded a net profit of Rp 34 trillion for the fiscal year 2023, bolstered by the improvement in coal prices, resurgence in motorcycle sales, and sustained growth in consumer goods financing services.

Furthermore, Astra, which serves as the authorized distributor of Toyota, Daihatsu, and Isuzu cars and Honda motorcycles, among other ventures, disclosed that it possessed an unused credit facility totaling Rp 95.4 trillion from lenders throughout the previous year. Additionally, the business conglomerate holds Rp 41.3 trillion in cash reserves and liquid savings.

Earlier statements from the company revealed that it has allocated Rp 32 trillion for capital expenditure this year, with 70 percent designated for its heavy machinery subsidiary, United Tractors.

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