Aneka Tambang not affected by rupiah depreciation

JAKARTA (JP): State-owned nickel and gold producer PT Aneka Tambang is not adversely affected by the rupiah depreciation because most of the company's products are destined for export, a senior official said.

Aneka Tambang's Finance Director Ki Agus Umar Tochfa said yesterday the rupiah's depreciation against the American dollar since July did not have a significant impact on the company.

"The rupiah depreciation instead is creating a windfall profit for the company," he said, declining to elaborate on additional revenues resulting from the weakening rupiah.

The company exports most of its products to Japan, Korea, Taiwan, China, Germany, Australia, Spain, India, the United States, France and England.

He said Aneka Tambang was optimistic this year's performance would be better than last year.

Last year the company recorded a net sales revenue of Rp 359 billion (US$123.79 million), down 5 percent from 1995's Rp 375 billion.

He said the company recorded a pretax profit of Rp 102 billion in 1996, down 18 percent from 1995's Rp 124 billion.

He said the profit decline in 1996 was caused by the downward trend in the nickel price in the global market.

He said the average nickel price in the global market declined from US$3.73 per pound in 1995 to $3.66 in 1996 and $3.44 in 1997.

He said the weak nickel market adversely affected Aneka Tambang's profits because nickel sales contributed about 70 percent to Aneka Tambang's sales.

He said gold accounted for 20 percent of the company's sales and the remaining 10 percent was generated by other minerals such as bauxite ore.

Umar Tochfa said there was no change in the company's plan to float shares later this year.

"But if you ask how many shares we will offer and how much money we will raise from the initial public offering... I simply don't know yet," he said.

He said Aneka Tambang would consult with the Minister of Finance, as the government nominee shareholder, Friday about its planned IPO. (aly)