Ramayana expects sales to grow to Rp 3.5t

Ramayana expects sales to grow to Rp 3.5t

Indonesian retailer PT Ramayana Lestari Sentosa expects sales this year to grow above Rp 3.5 trillion (US$415 million), compared with Rp 3.26 trillion the previous year, due to an increase in consumer spending over the next four months.

Ramayana's corporate secretary, Dwijanto, also said the rupiah's recent strength against the U.S. dollar and falling interest rates should help improve consumer confidence.

"Our sales are expected to break our projection of Rp 3.5 trillion this year," said Dwijanto.

He pointed to increased consumer spending during Muslim festivities in October and November, and Christmas and year-end holidays in December.

"Cyclically, in the second half of the year our sales will rise significantly," he added.

For the first half of this year, the company's sales were up slightly at Rp 1.273 trillion, compared with Rp 1.247 trillion a year earlier.

The company, which started as a small clothing shop in Jakarta in 1978, has proved its resilience against economic downturns. Its sales were 30 percent higher than its projections in 1998 when the nation's economy declined 14 percent, Dwijanto said.

Ramayana also plans to open four new outlets this year in effort to boost sales.

Dwijanto said the company will use up to Rp 120 billion from its internal cash reserves to open the new outlets.

As of June 30, Dwijanto said Ramayana's cash position was at Rp 800 billion.

Ramayana currently runs 80 department stores in 20 major cities in Indonesia. -- Dow Jones