SSI will remain in the red this year

JAKARTA (JP): Publicly listed property and construction firm PT Surya Semesta Internusa will remain in the red this year, despite a growth in sales, a senior executive of the company said on Tuesday.

Surya Semesta president Johannes Suriadjaya said the company expected to increase its revenue to Rp 290.6 billion this year, from Rp 285.6 billion.

But, he said, the company would continue to suffer losses, which were estimated at Rp 36.5 billion this year, compared with Rp 119 billion last year.

Johannes attributed last year's losses to significant foreign exchange losses and high interest payments as a result of the rupiah's sharp depreciation aginst the dollar.

He predicted the rupiah would continue to fall for the rest of the year due to political uncertainties, hampering the company's efforts to book profits.

"In the first quarter of the year, the company posted a net loss of Rp 16.8 billion, much less than the Rp 24 billion loss in the same period last year.

"This loss is despite the fact the company doubled its sales to Rp 110.7 billion in the first quarter of the year from Rp 53.9 billion one year ago," he stated, after the company's shareholders' meeting.

He said the company's affiliates accounted for Rp 12.8 billion of the first-quarter loss.

Foreign exchange losses reached Rp 2.6 billion in the first- quarter period, while interest payments, which totaled Rp 7.8 billion, also contributed to the company's losses in that period, he said.

The Indonesian property market could grow slightly by 10 percent this year, if the political and economic situation stabilizes, Johannes said.

"We're hoping to return to the black in 2003 at the latest," he said.

Surya Semesta owns properties, including industrial estates, hotels, office buildings and residential complexes, in Kerawang, West Java, Jakarta, Yogyakarta and Bali. Its major properties include the Glodok Plaza electronics and computer goods center in West Jakarta, the Grand Melia Hotel in South Jakarta, and the Melia Bali Villa and Spa Resort in Nusa Dua. (03)