Anwar Sierad expects another big forex loss

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)