SI expects to lift earnings

JAKARTA (JP): State-owned PT Surveyor Indonesia (SI) expects to lift its earning from it appraisal business this year by 600 percent, from Rp 10 billion (US$4.26 million) to Rp 60 billion.

The company's director of finance, Toga Sitompul, said yesterday Indonesia's rapid economic growth, particularly in the property sector, had boosted the appraisal services market.

Toga said Indonesia had only 400 valuers but needed between 3,000 and 5,000 to catch up with economic growth.

"Australia, for example, with a population of only 18 million, has 14,000 valuers," he said.

He was speaking at a seminar on The Development and Future Prospect of Appraisal Profession.

Toga said his company wanted to anticipate the government's plan to apply the new 1995 customs law which could cause a drop in his company's revenue from customs inspection services -- the main source of its income.

Based on the new law, the government will replace preshipment inspections -- undertaken by PT Surveyor Indonesia in cooperation with the world's largest inspection service company, Societe Generale de Surveillance (SGS) of Switzerland -- with on-arrival inspections by the directorate general of customs and excise.

Last year, about 98 percent of the company's Rp 500 billion revenue came from the customs services under the preshipment inspection system. The other two percent came from its appraisal business.

Toga said his company wanted to boost income from commodity assessment and controlling services.

But despite the new customs law his company would still inspect certain commodities, including oil and gas. he said.

Toga said his company wanted to organize training and education programs on appraisals to improve the quality of Indonesian valuers.

"With the global liberalization of trade and investment, we cannot avoid foreign valuers from coming here. We have to prepare ourselves to compete with them in our domestic market," he said.

He said that starting July, his company, in cooperation with the University of Portsmouth, England, and the University of Western Sydney, Australia, would organize an MBA program in quality management and appraisal. (bnt)