Gajah Tunggal raises tyre prices 10 pct on costs

SINGAPORE, June 16 (Reuters) - Southeast Asia's biggest tyre-maker, PT Gajah Tunggal Tbk (GJTL.JK), has raised tyre prices by 10 percent on high raw material but still aims to boost sales revenue by up to 20 percent, a company executive said on Monday. "We are still targeting an increase in our sales revenue of between 15 to 20 percent this year compared to 2007. The increase will be evenly contributed by an increase in selling price as well as volume," said Catharina Widjaja, director of corporate communications.

"Gajah Tunggal raised the price by around 5 percent in Q1 of 2008 and another 5 percent recently. GT will continue to monitor the impact of the rising prices of raw material," she told Reuters by e-mail.

An oil-led rally in Tokyo futures <0#JRU:> and tight supplies in Southeast Asia, blamed on heavy rains, have pushed up cash rubber to more than $3 a kg -- its highest level since the early 1950s, when the Korean War triggered a boom in commodity prices. (Reporting by Lewa Pardomuan; Editing by Jacqueline Wong)