Bakrie Sumatra Plantation projects 20-30% profit growth<\/p>\n
JAKARTA (JP): PT Bakrie Sumatra Plantation, the agroindustry
\narm of the Bakrie Group, projects a profit growth of between 20
\npercent and 30 percent this year despite the decreasing trend in
\nworld rubber prices, it said yesterday.<\/p>\n
Company director Sahat M. Sinaga said that to reach this
\nprofit target, the company would boost its rubber sales volume
\nthrough efficiency programs including raising the productivity
\nrate of its rubber plantations.<\/p>\n
He said the company projected producing 24,000 tons of rubber
\nthis year, up 4 percent from 22.955 tons in 1996.<\/p>\n
\"Last year, rubber prices also decreased. Still, we increased
\nprofit because our rubber plantations' production rate grew,\" he
\nsaid after the extraordinary and general meetings of the
\ncompany's shareholders.<\/p>\n
Bakrie Sumatra Plantation had increased its plantations'
\nproductivity rates to 1.6 tons per hectare in 1996 from 1.5 tons
\na hectare in 1993.<\/p>\n
\"We managed to increase production without adding operating
\ncost,\" he said.<\/p>\n
Simon said the benchmark RSS1 rubber prices dropped to US$1.35
\na kilogram in 1996 from $1.5 a kilogram in 1995. RSS1 rubber
\nprices further dropped to $1.06 kilogram in the first quarter of
\nthis year.<\/p>\n
The company increased its net profit 29 percent to Rp 43.1
\nbillion in 1996 although its net sales dropped 0.56 percent to Rp
\n559 billion that year.<\/p>\n
Other company director, James M. Belcher, said the decrease in
\nthe world's rubber prices was due to an oversupply on the world
\nmarket.<\/p>\n
\"The gap between the supply and demand ranges between 50,000
\nand 60,000 tons (a year),\" he said.<\/p>\n
Belcher said some newcomer countries had planted rubber
\nseveral years ago when the commodity hit a high price.<\/p>\n
He predicted rubber prices would go up on the long run with
\nthe automotive industry's increasing demand for natural rubber to
\nmake tires.<\/p>\n
Bakrie Sumatra Plantation operates rubber, cocoa and oil palm
\nplantations, but its main business is rubber which contributed to
\nmore than 97 percent of its total 1996 sales.<\/p>\n
The company operates 37,984 hectares of rubber, cocoa, and oil
\npalm plantations in Kisaran, North Sumatra; Pasaman, West
\nSumatra; and Tanjung Jabung, Jambi.<\/p>\n
It also operates a rubber processing plant in Kisaran and a
\npalm oil factory in Pasaman.<\/p>\n
The company also owns 75 percent of the shares of Lewis and
\nPeat Rubber, one of the world's largest natural rubber dealers
\nwith companies in London, Singapore and Middlesbury, the United
\nStates.<\/p>\n
The company is set to expand its oil palm business by opening
\nan 88,000 hectare oil palm plantation in Sanggau, West Kalimantan
\nthis year. It is also building a cooking oil factory in Karawang,
\nWest Java, which is due to be completed later this year.<\/p>\n
The company said yesterday it would distribute 36 percent of
\nits 1996 net profit, amounting to Rp 15.54 billion, in dividends,
\nor Rp 75 per share.<\/p>\n
The company has made a stock split of one to two shares by
\nlowering the nominal value from Rp 1,000 to Rp 500. Shareholders
\nwill receive nine bonus shares for every five old shares.<\/p>\n
The company also announced yesterday the replacement of A
\nHanif Bakri with Hari Witono as its president director. (jsk)<\/p>",
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