Update COVID-19 in Indonesia: 1,542,516 confirmed infections, 41,977 deaths (6 April 2021)
6 April 2021 (closed)
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That global demand for Indonesian commodities in both the mining and agriculture sectors is still far from recovered is reflected by several financial reports, covering financial results over the first half of 2013, that were published today (15/08). Three Indonesian companies engaged in Indonesia's mining and agriculture sectors posted significantly reduced net profits compared to the same period in 2012. These companies are Indo Tambangraya Megah, Salim Ivomas Pratama, and Perusahaan Perkebunan London Sumatra Indonesia.
Indo Tambangraya Megah (ITMG)
Indo Tambangraya Megah, one of the leading coal mining companies in Indonesia, recorded a 50.0 percent decline in net profit (YoY) to USD $123.4 million over the first six months of 2013. The company's sales fell 9.6 percent to USD $1.09 billion. Indo Tambangraya Megah's business operations, which are mostly located in the provinces of East, Central and South Kalimantan, include integrated coal mining, coal processing as well as operational logistics.
Salim Ivomas Pratama (SIMP)
Net profit of Salim Ivomas Pratama, an Indonesian vertically integrated agribusiness company specialized in palm oil derivative products, fell 89.4 percent to IDR 93.87 billion (USD $9.16 million) as costs rose by 10.2 percent, while revenues decreased by 7.6 percent. Apart from palm oil, Salim Ivomas Pratama is also engaged in the cultivation of rubber, sugar cane and other crops as well as the crushing of copra.
Perusahaan Perkebunan London Sumatra Indonesia (LSIP)
Perusahaan Perkebunan London Sumatra Indonesia (Lonsum), an Indonesian plantation company focused on the production of palm oil, rubber, tea and cocoa, posted a 72.1 percent fall in net profit to IDR 178.47 billion (USD $17.4 million) because costs of sales increased 15.4 percent, while revenues weakened 13.5 percent.
Slowing growth in China and India are a serious problem for the export of Indonesian commodities as both countries are important trading partners as well as major export destinations.