Astra International tops list of best companies<\/p>\n
JAKARTA (JP): Publicly listed PT Astra International, for the
\nthird consecutive year, topped the overall-leadership list of
\ncompanies in Indonesia, according to Far Eastern Economic Review
\nweekly news magazine.<\/p>\n
In its fifth annual review of 200 leading Asian companies, the
\nHong Kong-based magazine ranks PT Toyota Astra Motor after Astra
\nInternational, followed by Indofood, Indosat, Ciputra
\nDevelopment, Bank Central Asia, United Tractors (another Astra
\nsubsidiary), HM Sampoerna, Bank Bali and Freeport Indonesia.<\/p>\n
The list was compiled from a survey of 6,000 business
\nexecutives who were asked to rank companies in Asia by five
\nleadership qualities: services and products, innovativeness in
\nresponding to customers, management vision, financial soundness
\nand role model that other companies wanted to follow.<\/p>\n
The report noted that Astra International made adjustments
\nquickly when the rupiah was floated in mid-August. The largest
\nIndonesian automaker adjusted its production levels and ensured
\nthat it was not saddled with excessive inventory.<\/p>\n
The survey commented that how Astra coped with the economic
\ndownturn would go a long way toward determining whether the
\nenduring faith in its management was justified.<\/p>\n
It quoted Astra International's president Theodore P. Rachmat
\nas saying that \"the key is to survive in the short term and
\nprepare for the long term\".<\/p>\n
Rachmat said his company was paring its operating costs by,
\namong other things, cutting the salaries of its senior executives
\nby a range of 2.5 percent to 15 percent.<\/p>\n
\"My salary, for example, will be decreased by 15 percent
\nstarting next month. There are 400 Astra executives with monthly
\nsalaries of Rp 10 million or more who will have their pay cut,\"
\nhe added.<\/p>\n
Rachmat foresaw vehicle sales dropping 30 percent next year
\nfrom this year's estimated 190,000 cars.<\/p>\n
He said Astra had slashed its estimated earnings for this year
\nto Rp 350 billion from an earlier projection of Rp 850 billion
\ndue to depressed domestic market demand.<\/p>\n
But he projected that Astra's export-oriented agribusiness
\ndivision would become the largest contributor to its earnings
\nnext year, overtaking automobiles and motorcycles which now
\naccount for 50 percent of total revenue.<\/p>\n
The magazine observed that tight liquidity and high interest
\nrates would affect the automobile industry over the next one to
\ntwo years.<\/p>\n
But Astra, according to the survey, is not alone in facing
\ntough times. Indofood lost Rp 456 billion in the first nine
\nmonths of this year because of Rp 900 billion in foreign exchange
\nlosses.<\/p>\n
Ciputra Development is also looking at difficult times because
\nthe company derives 80 percent of its earnings from the sale of
\nhomes while its debt totaled Rp 1.7 trillion, including US$280
\nmillion in unhedged foreign loans, the survey said.<\/p>\n
The report put Indosat in a brighter light because of its
\ndollar earnings from international telephone calls.<\/p>\n
But the survey questioned Indosat's recent purchase of Rp 150
\nbillion in convertible bonds issued by the money-losing TPI
\ntelevision broadcasting station owned by President Soeharto's
\ndaughter, Siti Hardiyanti Rukmana.<\/p>\n
The report quoted some analysts as saying that the bond
\ntransaction contradicted Indosat's goal of maximizing shareholder
\nvalue.<\/p>\n
The survey praised Freeport's improvements in operational
\nefficiency and its social programs and environmental protection
\nefforts. (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-international-tops-list-of-best-companies-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}