PT Gudang Garam, Indonesia's largest cigarette maker,
\nforecast 2003 sales of 62 billion sticks, a slight increase from
\nlast year's 61 billion sticks, Heru Budiman,the company's
\ntreasury and investor relations director, said.<\/p>\n
This year's profit will probably be little changed, he said.
\nHe didn't give reasons.<\/p>\n
Gudang Garam's sales volume rose 5.2 percent to 50.4 billion
\nin the nine months to Sept. 30, helped by higher sales of its
\nmachine-rolled clove cigarettes. Nationwide, sales by all
\nIndonesian cigarette makers fell 1 percent in the period.<\/p>\n
The fact that ``we haven't raised our prices since March
\nhelped our sales volume,'' Budiman told a media and analyst
\ngathering. Gudang Garam's market share rose to 37.2 percent in the
\nnine months, from 35 percent the same period last year.<\/p>\n
Gudang Garam expects this year's sales of cigarettes by all
\nIndonesian cigarette makers to little change from last year's 177
\nbillion sticks on weak purchasing power.<\/p>\n
Indonesia's government raised fuel prices in January and
\nthrice this year increased electricity tariffs three times by 6
\npercent each as it seeks to narrow its deficit to Rp 34.4
\ntrillion (US$4.1 billion) this year.<\/p>\n
The company expects sales to continue growing next year, as
\nIndonesia's stronger economy may boost demand for its products.
\nThe country expects 4.8 percent economic growth next year, faster
\nthan this year's estimated 4 percent, helped by investment and
\nconsumer spending. The country also said earlier it won't raise
\nexcise tax on cigarettes next year.<\/p>\n
``Gudang Garam, which had negative growth last year, may book
\npositive growth next year, although it won't be much'' Rani
\nSofjan, an analyst at PT Mandiri Securities, said in a phone
\ninterview.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-gudang-garam-indonesias-largest-cigarette-maker-1447899208",
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"sponsor": "Okusi Associates",
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