UPDATE 1-Indonesia Astra's Q2 net profit down, sees better H2

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Thu Jul 30, 2009 6:46am EDT

* H1 net profit down 10.8 percent to 4.24 trln rph

* H1 revenue down 3.3 percent to 44.761 trln rph

* Q2 net profit down 5.6 percent to 2.365 trln rph

* Q2 revenue down 5.2 percent to 23.224 trln rph

JAKARTA, July 30 (Reuters) - Indonesia's PT Astra International Tbk (ASII.JK) on Thursday said it sees scope for a recovery in the second half with improving consumer confidence potentially helping businesses ranging from cars to plantations.

"Consumer confidence tends to increase along with the positive outlook on inflation, interest rate and currency," said President Director Michael D. Ruslim in a statement.

"The firm is expected to continue to withstand a challenging market in the second half, especially in the motorcycle business".

Astra, controlled by Singapore's Jardine Cycle & Carriage Ltd (JCYC.SI), owns firms specialising in heavy machinery used in the mining industry, finance, coal, palm oil plantations, and cars and motorbikes.

One of Astra's subsidiaries, PT Astra Honda Motor, recently revised up its motorcycle sales forecast to 2.45 million units this year, from a previous forecast of 2.1-2.4 million units, indicating a pick-up in consumer demand.

Consumer spending is one of the main growth drivers in Southeast Asia's biggest economy, which has a population of 226 million and a growing middle class.

The central bank has lowered its benchmark interest rate BIPG by a total of 275 basis points since December last year to a record low of 6.75 percent in July.

Commercial banks have been slow to lower their lending rates but are coming under increasing pressure from the authorities to follow suit in order to spur domestic demand.

Analysts expect Astra to post full-year net profit of 7.77 trillion rupiah in 2009, down from 9.2 trillion rupiah in 2008, according to Reuters Estimates.

Shares in Astra ended up 3.69 percent, in line with the broader market .JKSE which closed up 3.25 percent. (Reporting by Tyagita Silka; Editing by Sara Webb)

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