Indocement suffers from Forex loss

Indocement suffers from Forex loss
Published: 23 March 2005

Indocement Tunggal Prakarsa suffered foreign exchange losses of IDR498 billion, reducing the net profit of the company to IDR116 billion.  The financial report of the cement manufacturing company mentioned that the net profit of the company had significantly decreased from IDR670 billion on the previous year.  In 2003, Indocement booked oreign exchange earning of IDR38 billion. 

Some analysts said that the performance of the company was surprising, especially on the foreign exchange losses. Head of Research of PT Andalan Artha Advisindo Sekuritas said that the foreign currency losses of the company as much as IDR498 billion was too far from his prediction of IDR45 billion only.  The research house made such conclusions as the outstanding debt of the company was US$524m. The company had to repay some IDR43 million of the debt this year.