"The impact of the economic downturns in all sectors of the Indonesian economy is the main cause for the drop in the demand for cable products," Ignatius Iming Sujana, the commercial director of PT KMI Wire and Cable, noted here on Tuesday.
After holding a press conference on his company's annual report, Sujana explained that the weakening of the rupiah was the strongest reason behind the decline in the demand for cable products.
"Since most of the raw materials for cable and wire production are imported, hence the weakening of the rupiah has caused a major impact" he remarked.
A slowdown in the economic performance has prompted several developers to delay their projects. Besides this, several investment and infrastructure projects were delayed.
He forecast that the demand would not increase in the second semester of this year.
In the export sector, several projects are expected to continue in the second semester, but they are not yet considered significant.
In the first semester of 2015, PT KMI Wire and Cable posted sales worth Rp1,181 billion, up about 7 percent from that recorded in the first semester of last year.
However, the sales were not balanced with business profit, which experienced a ten percent decline, or Rp65 billion, as compared to Rp72 billion recorded in the first semester of 2014.
In 2015, the profit is forecast to increase 21 percent to reach Rp140 billion from Rp116 billion in 2014. (WDY)
: I Gusti Bagus Widyantara
COPYRIGHT © ANTARA 2026
Dilarang keras mengambil konten, melakukan crawling atau pengindeksan otomatis untuk AI di situs web ini tanpa izin tertulis dari Kantor Berita ANTARA.
