Cibinong books loss due to forex debt

Cibinong books loss due to forex debt

JAKARTA: PT Semen Cibinong, Indonesia's third biggest cement maker by volume, said it booked a loss last year because of the higher cost of servicing its foreign-currency debt.

The Jakarta-based company, controlled by Jona, Switzerland- based Holcim Ltd., had a loss of Rp 533.1 billion (US$56 million), or Rp 70 a share, from a profit of Rp 174.2 billion in 2003, or Rp 23 a share, it said in a statement published in the Bisnis Indonesia newspaper. It had a foreign exchange loss of Rp 407.4 billion. Sales rose to Rp 2.37 trillion from Rp 2.24 trillion in 2003.

The rupiah's 9.2 percent decline against the dollar last year prompted Cibinong to book foreign-exchange losses. The company sells most of its products to the local market, earning in rupiah, while most of its debt is in dollars.

Last year's sales by all Indonesian cement makers, including Cibinong's bigger rivals PT Semen Gresik and PT Indocement Tunggal Prakarsa, rose 8 percent to 37.7 million tons. Domestic sales increased by 9.1 percent to 30 million tons, Semen Gresik said on Jan. 17, citing figures from the Indonesian Cement Association.-- Bloomberg