Anwar Sierad expects another big forex loss

JAKARTA (JP): PT Anwar Sierad expects another big foreign exchange loss this year since foreign bankers have yet to agree to reschedule its foreign debts, the company's top executive said here yesterday.

Anwar Sierad president Budiardjo Tek said he had asked the creditors to roll over the company's US$120 million debt but that no decision had been made.

"The debt negotiation is underway and we expect the decision to be made by the end of the year," he told journalists, adding that he was optimistic the creditors would agree to a rescheduling.

Budiardjo said his company, which booked a foreign exchange loss of Rp 613 billion last year due to large foreign debts, preferred to negotiate with its creditors bilaterally rather than through the government-sponsored Indonesian Debt Restructuring Agency (INDRA).

"The company is expected to record a huge foreign exchange loss again this year," he told reporters after a shareholders meeting here yesterday.

Anwar Sierad recorded a total net loss of Rp 549 billion last year due to huge foreign exchange liabilities.

"The rupiah's collapse, which led to the country's worst ever economic crisis, is a big blow to Anwar Sierad," Budiardjo said.

The rupiah's 80 percent fall against the U.S. dollar has caused dollar-denominated debts of most companies in Indonesia to increase by more than 300 percent in rupiah terms, bringing many to the brink of collapse.

Anwar Sierad plans to divest from some of its unproductive subsidiaries to raise fresh funds and improve the company's financial performance.

Budiardjo said company subsidiary PT Sierad Produce, a chicken slaughterhouse and meat processing firm, also reported a net loss of Rp 614.43 billion, including foreign exchange losses totaling Rp 516.64 billion.

"We cannot expect the company to perform well while our economy continues to deteriorate," the company's chief commissioner, Fadel Muhammad, said. (aly)