Maspion predicts higher exports

Maspion predicts higher exports

JAKARTA (JP): Widely diversified Maspion Group expects higher
export earnings this year thanks to a growing demand for its
household electronics appliance, the company's senior executive
said on Thursday.

The group's president, Alim Markus, said a growing overseas
demand was expected to boost export earnings by 16 percent to
US$180 million this year from $155 million in 1998.

"In the first semester of 1999, our exports were expected to
reach $85 million. We target it could reach $180 million by the
end of 1999," he said.

He also said the group's growth in exports increased from a
pre-crisis level of 12 percent per year to an average of 15
percent per year amid the crisis.

The group's subsidiaries exported products to 45 countries.

Alim acknowledged the group was still facing several problems
in boosting exports.

"Lack of containers, lack of cargo space and importers'
concerns over the country's security are among the problems we
have to face in boosting exports," he said.

He said a lack of containers and cargo space resulted from
lower imports due to the country's economic crisis.

Maspion Group has 33 subsidiaries involved in producing
electronic goods, plasticware, kitchenware, luggage, polyfoam,
packaging, chemical industry, pipes, aluminum, cables, industrial
estates, construction, banking and others.

Two of its subsidiaries, aluminum makers PT Indal Aluminum
Industry and PT Alumindo Light Metal Industry, are listed on the
Jakarta Stock Exchange.

Alim also said Maspion Group currently had an outstanding
foreign debt of $139 million.

The company's debt to domestic banks currently stands at Rp
200 billion.

"We have successfully restructured our foreign debt from $150
million last year to $139 million," he said.

Alim said Maspion used the group's own scheme as well as one
implemented by the Indonesian Debts Restructuring Agency (INDRA)
in restructuring its foreign debt.

"We let the creditors choose between Maspion's or INDRA's
scheme. However, most of them decided to use Maspion's because it
was more simple and it was faster by one or two years than using
INDRA's scheme."

He refused, however, to give details of the debt restructuring
scheme, saying the group paid its debts in monthly installments.
(gis)