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)