The Management of PT Indocement Tunggal Prakarsa Tbk has been hedging the principles as well as the interest of its debt the company will pay until January 2005. Christian Kartawijaya, the finance director of Indocement, said that the hedging is aimed at reducing the impact if fluctuation of the exchange rate of local currency.
"We already take a prudent action by hedging our repayment of our principle of our debt as well as its interest we have to pay until January next year," he said after the program of Capital Market Award in Jakarta on Monday evening. He said that until the end of this year the outstanding debt of the company will be US$550 million. In October the company will pay some installment.
He said that around 97% of the debt is on US dollar, while the rest are in Japanese yen. "The net loss of Indocement on Semester I of the year is due to the interest loss," said Christian.
Indocement booked some net loss of IDR117.3 billion during the first half of the year compared to the net profit of IDR650.4 billion during the same period of the previous year. Such net loss was due to the interest loss of IDR433.9 billion, while on the same period of the previous year the company booked interest profit of IDR461.7 billion.