Aneka Tambang not affected by rupiah depreciation

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)