Ramayana profits up 79%

JAKARTA (JP): The owner and operator of Ramayana Department stores, PT Ramayana Lestari Sentosa, posted a 79 percent increase in net profit to Rp 61 billion (US$23.01 million) in the first semester this year from the corresponding period last year.

The company said yesterday the rupiah's depreciation against the American greenback over the past few weeks did not have a significant impact on the company's performance as it had no exposure to foreign currency debts.

"The company does not have any dollar loans and Ramayana still has deposits worth Rp 173 billion in banks," Ramayana's finance director Setiasa Kusuma said.

He said the government's tight monetary policy which brought the time deposit rate to about 30 percent per annum had benefited the company.

"Ramayana has to revise up the interest income to Rp 30 billion from the previously projected Rp 18.5 billion due to higher rates," the company said.

Though the rupiah's depreciation had no affect on the company, Ramayana did not revise up its net profit this year.

"Previously we projected the net profit to reach Rp 105 billion this year and we did not revise it up," he said. (aly)