Publicly listed animal feed and processed chicken producer, PT Charoen Pokphand Indonesia (CPI), says it will allocate 1.5 trillion rupiah (IDR; US$174 million) in 2011 for capital expenditures to support expansion plans, reports Jakarta Post.

CPI director, Ong Mei Sian, said last week that the funds would be sourced internally, even though bank loans were available.

She added that the company would spend the funds to increase the capacity at existing plants, relocate an existing plant in Lampung and build a new plant in East Java.

CPI, the local subsidiary of the Thai conglomerate, Charoen Pokphand Foods, currently has seven plants – one each in West Java, Central Java, Lampung, North Sumatra and South Sulawesi and two plants in East Java.

The company produces poultry feed, day-old chickens (DOC) and processed chicken.

CPI president director, Thomas Effendy, told reporters the company was targeting to increase sales 15 per cent and profits 10 per cent this year with the investment.

CPI booked IDR15.07 trillion in net sales in 2010, of which 75 per cent was contributed by poultry feed products, 15 per cent by DOC and the rest by processed chicken.

Jakarta Post adds that the company's annual meeting approved to pay out 29.53 per cent of last year's net profit of IDR2.21 trillion, giving shareholders a dividend of IDR39.80 per share.