CEO's Message
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To all shareholders,
Macro economic condition in 2003 showed a significant improvement compared to the
previous years, this improvement is showed by some macro economic
indicators, such as strengthening and stability in Rupiah exchange rate
at about Rp. 8.500/US$, inflation rate decreased to 5%, SBI rate
decreased to 8.4% and the increase in national reserve to US$35.2
billion at the end of 2003.
The Improvement in macro economic side did not automatically improve the micro economic
side, because the 4.7% Indonesia's economic growth in 2003 was mostly
drove by consumption. General election expenditure and bank credit for
property and cars. Ideally, the economics growth is driven by the
investment, but unfortunately the investment can not be generated
without short and long government's plan and renewal on many factors
such as infrastructure, Law enforcement and elimination of corruptions.
Under given situation, in 2003 company had achieved a better performance compared to
2002. Consolidated sales increased by 4 % to Rp. 3,059 billion in 2003.
This increment was contributed by the increase in average selling price of MEG, Nylon TC as
well as synthetic rubber by its subsidiaries Company.
Overall, 33% of the Company's sales was contributed by polyester product, 26 % by ethylene
glycol product, 21% by tire cord product and the rest was contributed by
its subsidiaries, 10 % from synthetic rubber.
The consolidated cost of good sold in 2003 has decreased by 0.1% to Rp 2,862 billion,
compared to 2,865 billion in 2002. This decrement was due to the
decrease in the value of material cost in Rupiah as a result of Rupiah?s
exchange rate appreciation against US$.
The Company's consolidated gross profit in 2003 was Rp. 197 billion, a 177% increase
compared to Rp 71 billion in 2002 . And in 2003 the Company's
operational profit was Rp 4 billion, after recording an operational loss
of Rp. 66 billion in 2002
The Company's consolidated net profit in 2003 was Rp. 798 billion, a lower figure
compared to Rp. 2,080 billion in 2002, this was due to the fact that
most of the company's debt structuring profit was recorded in 2002 and
the rest of it was settled and booked in 2003.
However, the Company is optimistic to be able to maintain and even improve its
operational performance in line with the better condition in its
financial performance as a result of the debt restructuring which had
been completed entirely in 2003.
Finally, we would like to take this opportunity to express our gratitude to our
staffs, business partners, creditors and shareholders for the support
they have provided. We believe that their continuing support will become
a strong foundation for the Company's future.
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CEO's Message