PT Indorama export revenues increase

PT Indorama export revenues increase

JAKARTA (JP): PT Indorama Synthetics, one of the country's
major polyester producers, expects to earn higher revenues from
exports this year.

Indorama's senior finance manager V.S. Baldwa said here
yesterday that the company's export revenue had grown to 80
percent of total sales in the first half of this year, up from 60
percent for the whole of 1997.

He said yesterday that most of the exports were destined for
developed country markets such as Europe, the U.S., and
Australia.

Baldwa said that exports would increase further in the coming
months because Indorama would continue to be the only Indonesian
company exempt from European Union anti-dumping duties on
polyester textured yarn, giving it a unique competitive advantage
in that market.

"Indorama's ability to produce and market its products has
reinforced the company's debt-servicing ability," he said.

Indorama, voted one of the best managed companies in Indonesia
by an Asia Money magazine poll, recently completed a corporate
investment program which ran from 1995 to the end of 1997 during
which US$250 million was invested in new businesses and expanding
existing operations with no cost overruns.

He said that Indorama had invested around $27 million in a
sewing thread plant in Indonesia on a 100 percent buy back
arrangement with a global player to generate dollar revenue.

Indorama recorded a 45 percent increase in revenue to Rp 980
billion last year, up from Rp 678 billion in the previous year.

During the same period operating profit rose from Rp 106
billion to Rp 250 billion.

Baldwa said the company's shareholders meeting approved plans
to retain all of the company's 1997 earnings of Rp 97 billion for
reinvestment by waiving a cash dividend for the year.

Indorama is the largest exporter of polyester products such as
polyester filament yarns, PET resin and staple fiber. Exports of
the latter constitute 57 percent of total Indonesian exports
valued at US$256 million. (aly)