Indocement Tunggal Prakarsa, PT.

I N D O C E M E N T A N N U A L R E P O R T 1 9 9 9 M e s s a g e f r o m t h e C h a i r m a n
06
Message from the Chairman
Board of Commissioners
The race to take the lead in tapping the emerging opportunities in
the new millennium has already begun
1999 was a year of mixed challenges and a year of transition.
The crisis in the Indonesian economy and across Asia continued to
stall levels of activity in the construction sector. This undermined
our earnings as domestic demand for cement remains down and
export market continues to be highly competitive pushing export
price to rock-bottom levels.
On the other hand, although real economic impact is yet to be felt,
the favorable developments in the Indonesian political situation
starting with the successful democratic presidential election in June
have deterred a further plunge in the Indonesian economy.
The rupiah exchange rate has slightly improved and stabilized,
interest rates have gone down, inflation has scaled down and
indications of increasing economic activities started to appear by the
latter half of the year. A similar trend is true in the Asian region
where most of our export customers are based and where a number
of our competitors operate. All these mark the transition in 1999
from a period of uncertainties to a period of hope for the cement
industry. Now, the race to take the lead in tapping the emerging
opportunities in the new millennium has begun. We will stay focused
and ready to perform despite the economic difficulties.
Our strategic purpose is clear: We will sharpen our focus on
emerging opportunities, and forge ahead to establish solid
foundations for optimum returns for the Company
For the Company’s part, the initiatives we took and the on-going
programs we have implemented, tempered the effect of the crisis as
we passed through very difficult times. The significant stride we
made and which we are about to complete toward the successful restructuring
of our loans and the positive inroads to forge alliances
with strategic investors shall, in time, transform your Company’s
position from uncertain to confident. Now, our strategic purpose is
clear: We will sharpen our focus on the emerging opportunities, and
forge ahead to establish solid foundations for optimum returns for
the Company.
Our principal challenges remain in optimizing sales, enhancing
distribution, improving productivity and efficiency, and lowering