PT Astra expects to book Rp 627 billion net profit

JAKARTA (JP): Indonesia's biggest carmaker PT Astra International has targeted a net profit of Rp 627 billion (US$257 million) this year, a 34 percent increase over last year.

Astra's Finance Director Rini M. Soewandi said here yesterday that an expected robust growth in automotive sales would enable her company to meet the profit target.

"Our net profits in the first quarter are already Rp 119.83 billion, up 63.12 percent from a year earlier," Rini said after the company's general and extraordinary shareholder's meetings.

In the first quarter its total sales rose 9.14 percent to Rp 3.48 trillion, from Rp 3.18 trillion in the same period last year.

"Our new Kijang is well accepted on local and foreign markets. And we will increase the production of our Honda motorbikes due to an increase in demand," she said.

At the meetings, shareholders approved the management's proposal to split the nominal value of its shares from Rp 1,000 (41.67 US cents) to Rp 500.

Shareholders also approved the proposal to distribute a dividend of Rp 120 per share.

Rini said her company's automotive businesses would remain the largest source of earnings this year.

Publicly listed PT Astra International launched a new model Kijang van in January with 45.80 percent local content.

The new van comes in 20 different models with a range of body styles, engines and transmissions.

Its off the road price ranges from Rp 27.05 million to Rp 43.4 million (about US$18,000).

She said PT Toyota Astra Motor, a subsidiary of Astra International, increased the new Kijang production to 7,800 vehicles last month to cope with the growing demand, but the waiting list of buyers was still very long.

She said this year her company would produce 75,000 Kijang vans, of which 1,370 would be exported to Brunei Darussalam, Papua New Guinea and the South Pacific Islands.

Astra expects its Honda motorbike sales to reach one million this year, up almost 53 percent from last year.

Astra International's chief commissioner Muhammad "Bob" Hasan said his company's car sales had dropped in the first nine months last year after the government announced its controversial national car policy.

Under the policy, the government allows PT Timor Putra Nasional to produce the national car, a 1,500cc-engine Timor sedan, with tax and tariff exemptions.

PT Timor Putra is controlled by Hutama Mandala Putra, the youngest son of President Soeharto.

Astra's car sales last year dropped to 160,563 vehicles, from 206,833 vehicles in 1995, causing its market share to decrease to 48.4 percent from 54.6 percent.

"We expect a strong growth this year. As long as our economy grows at a high level the demand for cars will continue to strengthen," he said.

He said many buyers have to wait until September for a new Kijang as Astra cannot meet the strong demand. (bnt)