Indonesia's Samko Timber expects to incur loss of 42 billion rupiah ($3.9 billion) in 3Q

Oct 30, 2008. /Lesprom.com/. Indonesian timber producer Samko Timber said that it will incur "substantial losses" for its 3Q results due to foreign exchange and asset impairment losses, Reuters reported. Samko Timber said in a statement that the weakening Indonesian rupiah against the U.S. dollar has caused an expected foreign exchange loss of 42 billion rupiah ($3.9 billion) in the 3Q. "The board does not expect to see any strengthening of the rupiah in the near future and expects higher foreign exchange losses in the 4Q 2008," the statement said. Samko Timber also said that the global financial crisis has caused a tightening of liquidity in Indonesia and it has affected the group's working capital funding. The firm said it is reviewing potential fund raising alternatives to strengthen the group's liquidity. Samko Timber produces various sizes and grades of processed timber products, such as primary plywood, laminated veneer lumber, medium density fiberboard and piano parts, as well as a range of secondary processed timber products, such as processed plywood, truck body components and solid wood moldings.