Indonesian state-run companies profit may fall 10% this year

Published: 12/03/2009 05:00


Indonesian state-run companiesâ profits may fall about 10 percent this year as commodity prices decline, cutting dividend contributions to the government.
Net income at companies including PT Tambang Batubara Bukit Asam and PT Pertamina may fall to 70 trillion rupiah (US$5.8 billion) from 78 trillion rupiah in 2008, Said Didu, secretary to State Enterprises Minister Sofyan Djalil, told reporters in Jakarta yesterday. The government may get 25 trillion rupiah in dividend payments from the companies, he said. Prices of palm oil, Indonesiaâs largest agricultural export, have dropped 48 percent in the past year. Coal has tumbled 51 percent, according to the weekly Newcastle price index provided by McCloskey Group Ltd. Indonesia is Asiaâs largest exporter of power station coal. According to a State Enterprises Ministry statement in September, the government had estimated this yearâs dividend payments to be 27 trillion rupiah. Last yearâs dividend target was 35 trillion rupiah, according to the statement. Indonesiaâs exports excluding energy may drop as much as 28 percent this year, the most in 27 years, while the $433 billion economy may grow 4 percent this year after a 6.1 percent expansion in 2008, Bank Indonesia said on March 6. Didu also said yesterday state-run companies may spend 152 trillion rupiah in capital spending this year, compared with 128 trillion rupiah last year. Source: Bloomberg

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