Bakrie plantation sees profit on stronger rupiah
Bakrie plantation sees profit on stronger rupiah
JAKARTA (JP): Publicly listed rubber and palm oil plantation
firm PT Bakrie Sumatra Plantations predicted a return to profit
this year, on expectations the rupiah would average Rp 9,500 to
the U.S dollar this year.
Bakrie Sumatra president Ambono Janurianto said on Tuesday the
company targeted a net profit of Rp 12.59 billion (about US$1.3
million) this year, up from Rp 193.65 billion in net loss last
year.
In the first semester, Bakrie Sumatra recorded a net loss of
Rp 124.26 billion, mainly due to foreign exchange losses.
"We expect an average rupiah rate similar to the one in 1999
which was about Rp 9,500 to the dollar," Ambono told reporters
following the company's presentation to public investors.
Foreign debt repayment, as the rupiah weakened to around Rp
10,000 against the dollar, resulted in Bakrie Sumatra's poor
first half results, he said.
The rupiah has since recovered over improved political
stability after the new government was elected in late July.
Keeping a healthy profit margin amid low commodity prices,
Ambono continued, would further assist the company's turnaround
in the second half of this year.
"We pay attention to our cost structure and try to keep the
(cost) level low," he said.
Ambono said a higher output on both rubber and oil palm's
fresh fruit bunch would help the company boost sales.
Rubber output is expected to grow to 24,209 tons from 19,839
tons the year before, he said.
Production of fresh fruit bunch is expected to increase to
369,954 tons compared to 318,087 tons last year.
Meanwhile, spokesman for the Bakrie Group Lalu Mara
Satriawangsa confirmed local media reports over the group's plan
to purchase an 80 percent stake in coal mining firm PT Arutmin
Indonesia.
Bakrie Brothers owns the other 20 percent stake, while the 80
percent stake for sale is held by Australian based BHP Billiton.
Under its contract, BHP must offer 31 percent of its stake to
a local investor this year.
Mara said that last year, BHP had already agreed to sell its
stake to Bakrie, which at that time was the only investor to
respond to BHP's offer.
He said Bakrie planned to acquire Arutmin's shares through its
unit, PT Bumi Resources, a hotel chain operator turned oil
company.
The choice fell on Bumi, as the firm is not a unit of the
heavily indebted Bakrie Brothers, Mara explained.
"We will find the funding ... Bakrie's name still sells," he
said.(bkm)