Continuing its strong performance in first quarter year 2010, PT Pelat Timah Nusantara Tbk., or PT Latinusa in short, the only tinplate producer - raw material for can (packaging industry) - in Indonesia, booked another dramatic net income increase in second quarter year 2010. This semester Latinusa recorded a total net income of Rp 55 billion compared to last year’s semester 1 of Rp 9.5 billion. Until June 2010, Latinusa’s net income has exceeded full year 2009 net income by as much as Rp 13 billion.

“Indonesia’s continuous economic recovery has certainly supported our business,” says Ardhiman, President Director of PT Latinusa. “Tinplate domestic consumption has improved from last year’s financial crisis impact and as the only tinplate producer in Indonesia we certainly benefit from this. Until June 2010, our sales volume has reached around 58 thousand ton.”

However, the improvement of domestic consumption, and the recent Government policy regarding import duty particularly for factory with CAPEX plan, also opens the door for imported tinplate to penetrate Indonesian market. “We are well aware of the imported product invasion to our domestic market, especially China tinplate. With its sound economic condition and tinplate production capacity which exceeds their local demand, China has become one of the biggest tinplate exporter to Indonesia,” says Suprapto, Commercial Director of PT Latinusa. Despite this invasion of import products, Latinusa still managed to book a total sales of 58 thousand ton in first half 2010, an increase by 16 thousand ton from first half 2009 sales which was only 42 thousand ton.
“We believe China and several other countries will be more aggressive in their effort of penetrating Indonesian market, however we are not terrified of this situation and we are very prepared to face this fierce competition,” adds Suprapto.

Latinusa currently undergoes its revamping project which will increase the plant’s efficiency and improve quality of its product as well as expand its annual capacity from 130,000 ton to 160,000 ton. Using the fund generated from its IPO last December 2009, the revamping project is scheduled to be completed by beginning of 2012.

“This revamping project will be our ammunition to grab our domestic market share from our competitors and to further improve our performance. Considering the fierce competition and vast opportunity in Indonesia, we decided to continue concentrating in domestic market first, especially the food industry which requires prime quality,” says Ardhiman. 

“In the near future itself, we look to reach nine to ten thousand ton sales per month for both July and August. This September, however, there will be a decrease in our sales volume. This decrease is a normal condition for our business and it is caused by the low business activity of our clients during the Lebaran season,” ends Ardhiman.