According to a report in Asia Pulse, Indonesia’s Indofood Sukses Makmur has reported a 60.95% decline in consolidated net profit, from IDR386.0bn (US$42.7m) in 2004, to IDR124bn in 2005.

The company attributed the decline to increases in costs and a loss in exchange rate margin due to the termination of its principle only swap. Pension payments and spending on workers’ severance pay also took its toll. 

Dioko Wibowo, company director and corporate secretary, said that despite tough competition Indofood had still managed to increase sales from IDR17.9 trillion to IDR18.8 trillion.