Indocement plans to further raise cement output

Indocement plans to further raise cement output

JAKARTA (JP): PT Indocement Tunggal Prakarsa, already the
largest cement producer in the country, will double the capacity
of its plant in Cirebon, West Java, to three million tons, and
construct another plant in Batu Licin, South Kalimantan with a
capacity of 2.3 million tons.

Sudwikatmono, the president of Indocement, said at the
company's shareholder meeting at Wisma Indocement here yesterday
that the US$430 million cement plant in S. Kalimantan will be
owned jointly with the Korea Development Company and Marubeni
Corp.

Indocement, he added, last year sold 9.8 million tons or 50
percent of the national market demand.

"The domestic market is growing and we have even canceled some
contracts with buyers overseas in order to meet the domestic
demand," he said.

He said that Indocement has been exporting its cement under
the Tiga Roda brand name to 21 countries worldwide.

Indocement's domestic market share is close to 50 percent
while its food division, established through acquisition in 1992,
commands 90 percent of the instant noodle market and a 60 percent
share of the snacks and baby foods market.

Indocement has three divisions: cement, property and food.

The food division consists of Bogasari, Indonesia's largest
flour mill, and the Indofood Group, the manufacturer and
distributor of instant noodles, food seasonings, snacks, baby
foods and beverages.

Indofood yesterday launched a public offering of 21 million
shares through the Jakarta Stock Exchange.

Dividend

Sudwikatmono told the shareholders yesterday that the after-
tax profits of Indocement declined from Rp 327.4 billion
(US$151.5 million) in 1992 to Rp 312.4 billion in 1993 due to the
additional financing costs associated with its acquisition in
1992.

He said that 1993, however, was an outstanding year for
Indocement, with both sales and operation earnings setting new
records.

The company's net revenues increased from Rp 2.2 trillion in
1992 to Rp 2.9 trillion in 1993.

The shareholder meeting agreed on the management's proposal to
distribute dividends of Rp 208 per share on Aug. 15.

Present at the two-and-a-half-hour meeting were the Salims,
Soedono and Anthony, Indocement's president commissioner and vice
president, respectively. Soedono, alias Liem Sioe Liong, is
Indonesia's number one tycoon whose position with the Salim Group
is being replaced by Anthony.

Other directors, Djuhar Sutanto, Ibrahim Risjad, Tedy Djuhar,
Iwa Kartika, Soepardjo, Daddy Hariadi and Fransiscus Welirang
also accompanied Sudwikatmono to lead the meeting.

Another director, Judiono Tosin, who had resigned earlier this
year, did not come to see his successor, the 36-year-old Benny
Setiawan Santoso, who was officially appointed as director in
charge of financial affairs yesterday.

The shareholders have also agreed to enlarge Indocement's
capital from Rp 750 billion to Rp 2 trillion and to issue bonus
shares at a ratio of one to one.

Indocement at present has 599,188,046 shares and assets of Rp
5 trillion.

It is 42.4 percent owned by PT Mekar Perkasa, 25.93 percent by
the Indonesian government, 12.75 percent by PT Citrabuana
Dirgapuri and 18.92 percent by the public as well as the firm's
employee cooperative.

Indosepamas

In a related development, Wisma Indocement also hosted the
annual meeting of PT Indosepamas Anggun yesterday, following the
meeting of Indocement.

Indosepamas's president, Fransiscus Welirang, told the
shareholders that the company's net profits have risen from Rp
4.26 million in 1992 to Rp 14.25 billion in 1993 following its
100 percent acquisition of PT Primashoes Ciptakreasi in 1993.

Welirang said that Indosepamas sales have risen 27.4 percent
from Rp 61.16 billion in 1992 to Rp 77.9 billion in 1993.

Indosepamas, a producer of Reebok and Adidas brand shoes, is
36.36 percent owned by PT Lingga Dasa Permata, 22.73 percent by
PT Suantra Indah Suplai, 8.18 percent by PT Tegar Perkasa
Dinamika, 5.46 percent by Sharif Sutardjo and 27.27 percent by
the investing public.

Sudwikatmono, Anthony Salim, Tedy Djuhar, Utomo Josodirdjo and
Sutardjo are the commissioners of Indosepamas.

Welirang said that the assets of Indosepamas increased to Rp
128.76 billion in 1993 from Rp 53 billion the previous year. (09)