PT Indocement Tunggal Prakarsa, Indonesia’s second-largest cement maker, Monday said its nine-month net profit fell 74 per cent on year due mainly to foreign exchange losses. Net profit in January-September came to IDR183 billion, down sharply from IDR712 billion a year earlier.
Indocement said in a statement it booked IDR264.5 billion in foreign exchange losses during the period, compared with IDR189.7 billion in foreign exchange gains the previous year, due to an 8 per cent drop in the rupiah’s value against the dollar.
As of September 30, Indocement’s foreign currency-denominated debt stood at US$427m.
Sales for the nine-month period rose 7.3 per cent on year to IDR3.398 trillion from IDR3.167 trillion a year earlier. The company said it will continue to pay down its foreign debt in a bid to reduce losses due to foreign exchange fluctuations. Germany’s Heidelbergcement AG holds a 65.12 per cent stake in Indocement.