Rimba Niaga loses Rp 1.5b

Rimba Niaga loses Rp 1.5b

JAKARTA (JP): Publicly-listed textile and garment exporter PT Rimba Niaga Idola reported losses of Rp 1.5 billion (US$650 million) for the year ended on June 30.

The company's president Haresh Dhalomal said in an annual shareholders meeting yesterday that the company failed to make profit even though its textile and garment sales reached Rp 15.6 billion.

PT Rimba Niaga, which went public in 1989, was founded in 1979 as a manufacturer of rattan furniture at Tangerang, West Java.

In 1992-93 and 1993-94 financial years the company failed to gain profit due to the sharp decline in export of its rattan products.

Last year the company's net losses reached Rp 1.4 billion.

On Aug.1 last year, the shareholders decided to change the company's business line to become an exporter of textile and garments.

Haresh estimated that the company will book $7 million in sales and a net profit of Rp 400 million next year.

He said that more than 50 percent of the earnings target has been realized during the first six months (July-Dec.) this year and the total target may be met at the end of the third quarter (March, 1996).(08)