Editor's Note
This editor’s note highlights the key facts and market implications behind “Plant 4D Starts Operation; ARNA Targets 17% Prof”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
JAKARTA – Ceramic producer PT Arwana Citramulia Tbk (ARNA) announced that its Plant 4D in Ogan Ilir, South Sumatra, has been completed and will be ready for operation in mid-April 2026.
According to management, Plant 4D will add 5.5 million square meters (m²) of annual ceramic production capacity, covering sizes 60×60 cm, 80×80 cm, and 60×120 cm.
This will bring ARNA's total installed capacity to 75.8 million m² per year in 2026.
In addition to maintaining an installed-capacity utilization rate of 97%, management is targeting production growth of up to 10% year-on-year in 2026.
“Last year, our production was 66.9 million m², this year our target is 73.8 million m². So it will grow 10%,” said Rudy Sujanto, ARNA’s Chief Financial Officer, to IDNFinancials on Wednesday (8/4).
He added that several production lines that were halted last year will resume operations in 2026, including lines at Plant 2 and Plant 5.
These lines will produce ceramics that are deemed more attractive for market demand, such as 60×60 red-body tiles and floor tiles rather than wall tiles.
Rudy also expects sales volume to rise by around 7% to 72.8 million m² in line with higher production.
Supported by an expected 9% increase in the Company's average selling price (ASP) in 2026, ARNA is optimistic that revenue or net sales performance could jump by as much as 17%.
“We are optimistic about 9% ASP growth because, as mentioned earlier, 4D will produce porcelain tiles, which command better prices,” Rudy said during the Annual Public Expose in Banten.
However, despite the strong revenue target, Rudy prefers to set a realistic net profit margin target, as gas-supply constraints could push production costs higher.
“Last year, our bottom-line margin was 13.7%. This year, around 14.1 to 14.2% would already be good, because gas prices this year will definitely be much higher than last year,” Rudy added.
Even so, management remains optimistic that net profit in 2026 can follow top-line performance, with a target increase of up to 17%.
As previously reported by IDNFinancials.com, ARNA recorded a 6% year-on-year decline in net profit in 2025 to IDR 400.47 billion due to production-cost pressures, particularly gas tariffs and supply disruptions.
Despite the drop in net profit, ARNA still announced a dividend plan of IDR 45 per share or IDR 330.4 billion for the 2025 financial year, indicating a yield of 8.5%.
Source: Read the original article | Published: April 09, 2026