SSI will remain in the red this year

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)