Astra Agro Lestari's net profit up 44%

JAKARTA (JP): PT Astra Agro Lestari booked a 44 percent increase in net profit last year, reaching Rp 91 billion (US$11.37 million) from Rp 63 billion in 1996.

Finance director Benny Tjoeng said over the weekend that the company, a plantation subsidiary of PT Astra International, recorded net sales of Rp 458 billion last year, an increase from Rp 342.09 billion.

The company projected to record a total net sales of Rp 1 trillion this year due to the projected growth of export sales.

"We plan to export around 30 percent of our CPO this year."

The company also expects to produce 300,000 tons of crude palm oil (CPO) this year, up from 254,000 tons in 1997.

He said the firm exported about 12,500 tons of CPO last year.

"With increasing allocations of CPO for exports, we are optimistic of reaching the sales target this year," he said on the sidelines of a public presentation of PT Astra Otoparts last week.

The currently high price of CPO in the global market, he said, would be advantageous to the firm.

He said the CPO currently sold at $680 per ton on the global market, compared to $290 per ton domestically.

"We are lucky enough that the government will soon lift the export ban on CPO products by April 22," he said, referring to the deadline given by the International Monetary Fund to the government.

Under the deal with the IMF, the government is required to lift the export ban on CPO by April 22 and replace it with an export tax of 40 percent.

Benny said the company was also optimistic of performing well this year as it was not burdened by significant foreign exchange debts.

Astra Agro Lestari currently has foreign exchange debts of $15 million owed to the country's largest private bank, Bank Central Asia of the Salim Group.

Although the debts will mature this year, Benny said "but we still have bank deposits worth $6 million".

He said the monetary crisis, which has seen the rupiah value fall by around 70 percent against the American dollar, had not adversely affected the performance of the company as it generated some of its revenue in dollars.

Astra Agro Lestari and PT Astra International are listed on the Jakarta Stock Exchange. (aly)