Bimantara's net profit surges in first 9 months

JAKARTA (JP): The widely diversified Bimantara group reported a Rp 95.9 billion (US$41.34 million) net profit for the first nine months of this year, up 18 percent on the same period last year.

Bimantara vice president Rosano Barack said yesterday 34 percent of the profit came from its media and broadcasting division.

He said 23 percent of the profit was derived from its transportation and automotive division, 14 percent from telecommunications, 8 percent from chemical industries and 21 percent from other industries.

The publicly listed company expects to book a Rp 155 billion net profit and Rp 890 billion net revenue for the year.

"We're very optimistic that our company's performance next year will be better than this year," he said. "We always target to grow at least 10 percent a year."

Rosano said the broadcasting division would still be the largest contributor to profit next year. But the company, owned by Bambang Trihatmodjo, President Soeharto's second son, would improve its performance in other areas, particularly automotives.

Jongkie D. Sugiarto, the president of Citra Mobil Nasional, a Bimantara automotive subsidiary, said competition was getting tougher in the automotive market. Bimantara would only produce middle-class sedans.

"We'll not produce Jeeps because that market is very limited," he said.

He said Bimantara was still seeking tax breaks for its Cakra and Nenggala sedans as had been given to Timor car -- produced by PT Timor Putra Nasional, controlled by Hutama (Tomy) Mandala Putra, Bambang's youngest brother.

Jongkie said his company had produced 1,000 Cakra and 1,000 Nenggala sedans. "All have been sold. And our target is to produce 1,100 units of Cakra and 1,100 units of Nenggala," he said.

He said his company would produce 2,500 of these cars next year.

Rosano said Satelindo, a Bimantara telecommunications subsidiary, would go public in 1998. "We also plan to list our broadcaster RCTI on the capital market," he said. (bnt)