Surviving the monetary crisis

Surviving the monetary crisis

PT Aneka Tambang Tbk

Publicly listed mining company PT Aneka Tambang Tbk has recorded a Rp 251.81 billion net profit for this year's first semester -- a 949 percent increase over the Rp 24 billion recorded for the same period last year.

PT Aneka Tambang Tbk is able to enjoy increased profits because of its efforts to maximize operational efficiency, the depreciation of the rupiah against the U.S. dollar and increasing revenue from interest bearing accounts.

Although the company has been able to take advantage of some circumstances arising from the economic crisis, it has also faced hurdles from the country's ongoing problems, especially relating to letters of credit with foreign creditors, which has forced a delay of certain goods needed for its operations.

PT Aneka Tambang Tbk has been recognized as being in the lowest exploration cost category in the world. The company primarily mines nickel and gold, as well as bauxite, iron, sand and silver.

Company sales are 96 percent dollar-driven, while 70 percent of operation costs are denominated in rupiah. This is a major factor in enabling its earning power to substantially increase.

About 85 percent of the company's products are exported to Japan, China, Australia, Taiwan, the United Kingdom, Spain, Belgium, Germany and Singapore.

The key to success in maintaining and expanding market sales is the company's commitment to producing high quality products to ISO 9002 standards, its commitment to deliver products requested by customers and its consistency in giving the best competitive prices.

PT Aneka Tambang Tbk president director Ir. D. Aditya Sumanagara said the company's formula for success stemmed from its 30-year track record in acquiring mining technology, its vast experience in resource exploration and a well-trained team of professionals.

PT Aneka Tambang Tbk maintains a competitive edge by producing quality products at low prices and by realizing that quality service matters.

Aditya said the company also strives to create a conducive climate both in the mining sector and the export sector, eliminate a high-cost economy, change the government's passive attitudes to an assertive dynamic approach and push for new government regulations on taxes, retribution, licenses and value added taxes in the mining sector.

PT Aneka Tambang Tbk continues to face the future by seeking opportunities in exploration and by exporting mining products.