Inalum Loss Accumulated Reached US$ 1.65 Billion
Bisnis Indonesia, page T7, 2006-09-05
PT Indonesia Asahan Aluminium (Inalum) experienced a total accumulated loss of around US$ 1.65 billion as a result of the strengthening of the yen towards the American dollar. This loss was caused by PT Inalumís debt amounting to 411 billion yen to build a factory to process aluminium. Meanwhile, the sales of ingots use US dollars. The financial cost as a result of the alteration in exchange rates is up to 30 percent from the total cost each year.
Each year, from the operational side, the company manages to obtain a profit at an average of US$ 25 million from the total sales turnover of US$ 300 million. In the past two years, production capacity has increased to 250,000 tons per year from the average production capacity of 190,000 tons per year. In 2005, the company managed to gain a profit of US$ 120 million. The total operational profit of PT Inalum, since its initial operation in 1982 up to 2005, amounts to US$ 569 million. Therefore, the company is optimistic it will pay off its debts by the year 2013.
Earnings to Stay at High Level, Inalum
The Jakarta Post, page 14, 2006-08-03
PT Indonesia Asahan Aluminium (Inalum) this year would remain at last yearís level despite a slight increase in the price of the raw materials. Production was estimated to decline slightly to 244,000 tons this year from 252,000 tons in 2005, but the production level would still be above the companyís installed capacity.
Inalumís revenue rose significantly to US$ 120 million in 2005 from US$ 90 million in 2004, partly due to the sharp increase in global aluminum prices. Inalum, a joint venture between the government with a 41 percent stake, and Japanís Nippon Asahan Aluminium with a 59 percent stake, produces aluminum ingots with a purity of between 99.70 percent. About 60 percent of the production is exported with the remaining 40 percent going to the local market.