REPUBLIKA.CO.ID, JAKARTA - Indonesian conglomerate PT Astra International reported on Monday a 10 percent rise in first-quarter net profit, lifted by a rise in crude palm oil prices and stronger contribution from its heavy equipment arm.

The company posted a net profit of 4.7 trillion IDR (406.4 million USD) for the three months ended March, compared with 4.3 trillion IDR a year earlier. Astra's businesses include the country's biggest car distributor, plantations as well as mining equipment and financial services companies.

Astra's agribusiness division saw net profits surge 120 percent to 625 billion IDR, benefiting from a rise of 38 percent in average crude palm oil prices compared to a year earlier, the company said.

The company sold 12 percent more cars and 4 percent more motorcycles in the first quarter. But net profit at its auto distribution unit fell 5 percent due to intense competition, it said. Net profit at its heavy equipment and mining division rose 39 percent in the first quarter year-on-year.

"We expect rising competition in the car market and the weakness in coal prices to continue in 2014," Astra President Director Prijono Sugiarto said in a statement.

Indonesia is set to overtake Thailand as Southeast Asia's biggest car market as early as this year, driven by an expanding middle class and growing demand for budget, environmentally friendly vehicles, company executives and analysts said. 

Ikuti Whatsapp Channel Republika