Jakarta. Clothing retailer Ramayana Lestari Sentosa (RALS) said Thursday it has cut the capital expenditure by a third to Rp 200 billion ($13 million) this year and delayed the plan to open new outlets as the sector has not fully recovered from the impact of the Covid-19 pandemic.

Ramayana Director Andreas Lesmana said the business depends largely on labor-intensive industries such as textile which saw massive layoffs during the pandemic, explaining why the sector took a longer time to recover than others.

“There have been many layoffs in labor-intensive industries that certainly have an impact on the company. We are still studying the possibility of a new outlet opening,” Andreas said in a public filing.

The company currently operates 103 stores across the country. During the first quarter of the year, Rp 34.6 billion of the capital expenditure budget has been spent.

First-quarter sale revenues fell slightly by 2.79 percent year-on-year to Rp 583.75 billion but the net profit grew by 0.55 percent to Rp 30.17 billion thanks to a 9.64 percent decline in sale costs.

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