Great River to export most of its products

JAKARTA (JP): Publicly listed garment producer PT Great River International will export most of its products this year because domestic demand continues to decline, a company executive said yesterday.

The company's president and chief executive officer, Sunjoto Tanudjaja, said about 70 percent of this year's total production would be sold overseas.

In past years, he said, the integrated textile company allocated only between 40 percent to 50 percent of its total output for export.

"We will boost our exports to anticipate a decline in domestic demand due to people's weakening purchasing power," he said after the company's annual shareholders meeting.

Sunjoto said the company had established a subsidiary named PT Great River Export to support export activities.

The company produces well-known brand-name products such as Triumph, Arrow, Disney, Choya, Saville Row, Nino Cerutti, Kenzo, Pierre Cardin and Elle and currently exports to 20 countries.

Last year, about 44 percent of its exports went to other ASEAN countries and Australia, 39 percent to Japan and the remaining 17 percent to European Community and the United States.

Sunjoto said the company was optimistic about reaching its export target given the promising demand from several new overseas markets such as Middle East countries and other European countries.

He said the company reduced its annual production capacity by 70 percent at the beginning of this year in order to boost efficiency.

He added that at present the company focused only on producing well-known brand names of lingerie, T-shirts, casual wear, men's clothing, children's clothes and jeans.

Sunjoto said the company would also sell some of its subsidiaries as part of the company's program to focus on its core business.

"We want to concentrate on our core business. The funds we get from our divestment will be used to strengthen the consolidation of our core business," he said.

He declined to give further details.

The company also reported that its sales rose 22.5 percent to Rp 82.4 billion (US$5.89 million) in the first quarter of this year over Rp 67.3 billion in the same period last year.

The company said the increase in sales was due to the increase in its exports.

Sunjoto said it was decided at the shareholders meeting not to pay a dividend for the company's 1997 earnings due to the loss it suffered during the year.

Sunjoto said the company suffered a net loss of Rp 12.5 billion last year due to foreign exchange losses of Rp 24.43 billion despite the increase in operating profit to Rp 51.53 billion.

The company booked a net profit of Rp 25.7 billion in 1996. (gis)