Astra names Ruslim president<\/p>\n
PT Astra International, Indonesia's, biggest automobile
\ndistributor, named Vice President Michael Ruslim its next
\npresident, replacing outgoing president Budi Setiadharma.<\/p>\n
Ruslim, 51, will become president of Indonesia's second- most
\nvaluable company, after Setiadharma becomes chairman effective
\ntoday, Setiadharma told shareholders in Jakarta at the company's
\nannual meeting.<\/p>\n
Ruslim will take over a company whose sales growth is expected
\nto slow after surging 41 percent last year. Encouraged by the
\nlowest interest rates in six years, Indonesians borrowed to buy
\ncars last year, increasing Astra's profit by 22 percent. The
\ncentral bank has said it may raise rates, increasing borrowing
\ncosts.<\/p>\n
\"The challenge for him is how to continue (Astra's) strong
\nearning growth considering that most people are expecting slower
\ngrowth,\" said Liny Halim, an analyst at Macquarie Securities in
\nJakarta, who rates the shares \"outperform\".<\/p>\n
The company also said it will pay a final dividend of Rp 270 a
\nshare. In November, Astra paid an interim dividend of Rp 100 a
\nshare.<\/p>\n
Astra, which was set up in 1957 as an agricultural trading
\ncompany, expects sales growth to slow to 20 percent this year
\nfrom 41 percent in 2004, Setiadharma said earlier this month. The
\ncompany expects profit to rise 15 percent this year, slower than
\nthe 22 percent increase in 2004 when it had one-time gains from
\nselling investments, he said.<\/p>\n
\" My priority will be to maintain Astra's International's
\nmarket share,\" Ruslim said at a briefing. \"We will add more
\noutlets and increase Astra's after sales service.\"<\/p>\n
Ruslim, who earned a master's degree in engineering at the
\nUniversity of Wisconsin, joined Astra in 1983 from Citibank NA,
\nwhere he headed the merchant banking division.<\/p>\n
The Jakarta-based company, which is 49.7 percent controlled by
\nSingapore-based Jardine Cycle & Carriage Ltd., is the sole
\nIndonesian importer and assembler for Honda Motor Co., Daihatsu
\nMotor Co. and Isuzu Motors Ltd. The company is also paying more
\nto import vehicle kits from abroad and has higher transportation
\ncosts. The rupiah has declined 2.2 percent against the U.S.
\ndollar this year.<\/p>\n
Industry sales in Indonesia rose 29 percent in April from a
\nyear earlier, Astra said, citing figures from the Indonesian
\nAutomotive Industries, or Gaikindo. Astra and rivals sold 51,248
\nunits in April compared with 39,813 units a year before.<\/p>\n
bMotorcycle sales in Southeast Asia's biggest economy rose 31
\npercent in April from a year earlier to 407,744 units, Astra said
\nciting figures from the Indonesian Motorcycle Industry
\nAssociation.<\/p>\n
\"With low per capita ownership, one two-wheeler for 12 people,
\nand driven by aggressive lending\" from financial institutions,
\nmarket demand for two-wheelers remains strong, Ferry Yosia
\nHartoyo, head of research at DBS Vickers Securities in Jakarta
\nsaid in a note to investors.<\/p>\n
Astra International owns companies such as PT Astra Agro
\nLestari, Indonesia's biggest publicly traded agriculture company,
\nPT United Tractors, a heavy equipment maker, and PT Astra Graphia
\na computer services company. Astra International also controls PT
\nBank Permata along with U.K.'s Standard Chartered Plc.<\/p>\n
Maruli Gultom, president of Astra Agro was named a director on
\nAstra International's board along with Tossin Himawan, vice
\npresident of PT Astra Honda Motor, and Johnny Darmawan, president
\nof PT Toyota Astra Motor.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-names-ruslim-president-1447893297",
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"sponsor": "Okusi Associates",
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