JAKARTA - PT Indo Rama Synthetics Tbk (INDR) up-dates the raw material price every month to reduce the risk for the company. In the fluctuation market price, the company will not do raw material pricing with long time span before sales.
President Director of PT Indo Rama Synthetics Tbk, VS Baldwa, said the company will target the company’s revenue to be better in second quarter 2016, but they will not hedge the raw material options. “No, we do not do hedging. We do the pricing every month; you cannot hedge. This is monthly price,” said he in Jakarta.
According to him, the hedging policy is just used for short term, to make the company condition stable. The company do not buy the raw material price in the beginning of the year, due to the decreasing potential in every month.
“No, we will be bankrupt if we do that way. If we buy it for this year, and the price is going down, what’d you do? Customer is not going to pay you the price based on the beginning of the quarter. So, normally we buy on monthly basis. Every month we buy it for just that month,” said he. (LK)