Tito Summa Siahaan
Consumers goods makers posted strong earnings in 2011, benefiting from strong domestic consumption, while energy-related companies saw their profit drop as rising global energy prices took their toll.
Net income at Gudang Garam, the country’s largest cigarette maker, rose 20 percent to Rp 4.14 trillion ($455 million) in 2011 from a year earlier, while sales rose 14 percent to Rp 37.69 trillion.
Unilever Indonesia, the country’s largest listed consumer goods firm, posted net income that surged by 23 percent to Rp 4.16 trillion. Its sales climbed 19 percent to Rp 23.47 trillion.
Meanwhile, alcoholic beverages maker and distributor Delta Djakarta reported a slight improvement in net income last year, at Rp 151 billion, up from Rp 146 billion in 2010.
Analysts in Jakarta said consumer-related companies benefited from the robust economy in Indonesia last year as personal spending, which makes up about 60 percent of economic activity, accelerated.
“Robust economic growth means more disposable income for Indonesian consumers,” said Suryadi Candra Kasih, head of research at AMcapital. He added that Indonesia would remain a promising market for the consumer goods sector if the economy continued to grow at around 6 percent.
He said, though, the nation remains a difficult place for consumer companies to invest in, citing poor infrastructure that makes it difficult to transport goods.
Coal miners also posted strong results, because of higher production and strong demand locally and from India and China.
Net income at Bayan Resources more than doubled in 2011 to Rp 1.87 trillion from Rp 780.71 bil lion a year before. Revenue soared 51 percent to Rp 13.23 trillion.
Net income at ABM Investama, a rival coal miner that is a subsidiary of heavy equipment distributor Trakindo Group, more than tripled to Rp 412 billion last year from Rp 127 billion in 2010. Its revenue climbed 48 percent to Rp 6.62 trillion.
Local lenders also benefited from robust economic growth, Indonesians started to borrow more to finance the expansion of their businesses. Net income at Bank Arta Graha, Bank Sinar Mas and Bank Agroniaga rose by 20 percent, 9 percent and 100 percent, respectively.
State-controlled toll-road operator Jasa Marga saw its profit climb, benefiting from a surge in car sales as more drivers used the company’s highways. The operator’s net income rose 11 percent to Rp 1.32 trillion.
Meanwhile, different financial results were reported from two state-controlled companies, electricity producer Perusahaan Listrik Negara (PLN) and gas distributor Perusahaan Gas Negara (PGN), as profit slipped amid a surge in global energy prices.
PLN’s net income dropped 29 percent to Rp 7.19 trillion because of higher costs even as revenue soared 28 percent to Rp 208.01 trillion. PLN last year spent Rp 120.55 trillion for fuel and lubricants, 34 percent more than in 2010.
PGN’s net income fell 4.5 percent to Rp 5.93 trillion, as revenue fell 1 percent to Rp 19.57 trillion. The company buys some of its gas from abroad.
Bumi Resources Minerals, a Bakrie Group-affiliated miner of copper and iron, posted a 13 percent drop in net income last year to Rp 664.7 billion.
Net income at Telkom, the country’s biggest phone operator, fell 5 percent to Rp 10.96 trillion. Telkom’s revenue rose 3.8 percent from Rp 68.82 trillion.
Indonesian listed companies rushed to meet Friday’s deadline for submitting last year’s financial statements.
Additional reporting from Bloomberg