Indofood plans more exports<\/p>\n
JAKARTA (JP): The world's largest instant noodle producer, PT
\nIndofood Sukses Makmur, will expand its overseas market to obtain
\nmore foreign exchange to repay its huge foreign debts.<\/p>\n
The company's second vice president, Eva Riyanti Hutapea, said
\nyesterday Indofood expected to raise about US$300 million this
\nyear from exports.<\/p>\n
She said the export of instant noodles was expected to
\ncontribute about $11 million to this year's export target,
\ncoconut oil $120 million, palm oil $140 million and miscellaneous
\nproducts accounting for the remaining $29 million.<\/p>\n
\"We have to boost the exports to generate more dollars to
\nfinance part of our debts,\" she said after a shareholders
\nmeeting.<\/p>\n
The company's chief commissioner Soedono Salim, a longtime
\nally of former president Soeharto and his son Anthony Salim, the
\ncompany's first vice president, were not present at the meeting.<\/p>\n
Eva said Soedono, alias Lim Sioe Liong, was still in the
\nUnited States undergoing eye treatment while Anthony had another
\nimportant meeting.<\/p>\n
Indofood's foreign debts reached US$1 billion as of this
\nmonth, she said.<\/p>\n
She said she was optimistic that the company would be able to
\nmeet all its overseas obligations because about $393 million of
\nthe total foreign debt had been hedged at Rp 4,500.<\/p>\n
Contract<\/p>\n
The company also had a forward contract worth $353 million
\nwhich would be due by the end of this year and the middle of next
\nyear, she said.<\/p>\n
\"But, on top of that we still have cash on hand worth $100
\nmillion.\"<\/p>\n
Of the company's total funds, she said about 60 percent was
\ndeposited in the country's largest bank, Bank Central Asia (BCA),
\na financial arm of the Salim group which was put under the
\nsupervision of Indonesian Bank Restructuring Agency (IBRA) early
\nlast month.<\/p>\n
The remainder is deposited in other local commercial banks.<\/p>\n
Eva said BCA's recent troubles had not affected the operations
\nof Indofood.<\/p>\n
She declined to mention the company's projected sales and net
\nprofit this year.<\/p>\n
The company booked a 70 percent decline in net profit to Rp
\n28.29 billion ($2.57 million) in the first quarter this year from
\nRp 97.36 billion over the same period last year, even though the
\ncompany's sales increased by 127 percent to Rp 1.76 trillion from
\nRp 778.20 billion in the same period.<\/p>\n
Eva also said the company might raise the retail price of
\ninstant noodles to Rp 600 per packet in the coming months to cope
\nwith the rising production cost.<\/p>\n
She said Indofood had heavily subsidized sales of the noodles
\nin the domestic market since April due to the sharp increase in
\nthe production cost.<\/p>\n
It costs Rp 369 to produce a packet of instant noodles while
\nits sales price is Rp 320.<\/p>\n
Indofood, which produces 13 billion packets of instant noodles
\nper year, has divisions on noodles, edible oil and fats, flour
\nbusiness and snacks, baby foods, distribution, trading and others
\nbusinesses.<\/p>\n
Eva said the company -- which suffered total losses of Rp 45
\nbillion due to massive riots and looting in May -- is currently
\n10.18 percent owned by the government, 17.49 percent by PT Mekar
\nPerkasa, 5 percent by PT Citra Buana Dirgaputri, 6.09 percent by
\nAquila Holding Ltd., 5.84 percent by Norbax Inv and other
\nshareholders account for the remaining 55.40 percent. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofood-plans-more-exports-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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