Despite the global and domestic economic turmoil, Indonesia's bluechip companies have managed to avoid the storm as seen in their hefty profits for the first half of the year.

Higher commodity prices, mushrooming infrastructure and property projects, and a relatively strong public purchasing power have functioned as saviors for these companies.

Seven publicly listed hotshot companies, having recently published their financial accounts, posted an average 52.1 percent increase in net profits between January and June this year as against the same period last year.

However, state-controlled telecommunications company PT Telkom is the only darling of the stock market which posted a 4.94 percent drop in its first half net profits, due mostly to the higher costs of keeping it afloat in the stiffer competition of the price war among telecommunications operators.

The biggest earner was mining giant PT Bumi Resources; booking a 150 percent jump in profits on the back of soaring coal prices triggered by the energy-hungry economic giants, China and India.

As a slight reflection of the country's relatively robust consumption, PT Unilever Indonesia posted a 29 percent jump in net profit to Rp 1,36 trillion ($148 million), from Rp 1,05 trillion, due to higher sales.

The hefty proceeds are proof Indonesia's giant companies have been able to weather the economic storm thus far.

"The first half results showed us the Indonesian economy is not necessarily connected with the global (U.S.) market. This is because we are focusing more on domestic consumption, which accounts for more than 50 percent of the gross domestic product," stock market analyst Felix Sindhunata said.

Since the second quarter of this year, analysts have repeatedly painted a bleak forecast for the Indonesian economy, citing the U.S. slowdown, soaring commodity prices and higher inflation at home.

The people's purchasing power remained resilient than many expected, despite an average 28.7 percent in mid May, although its spiraling negative impact would probably be counted in the third quarter of the year.

The Central Statistics Agency (BPS) reported Friday inflation in July rose 11.9 percent from a year earlier, up from 11.03 percent in June, due mostly to the increasing prices of food and fuel.

"Maybe we will feel it in the next quarters, but I'm not sure how big the impact will be," Felix said.

Manufacturing companies, such as PT Astra International and Unilever, were able to post hefty profits despite a looming increase in production costs and inflation pressures.

Astra was able to sell 148,000 cars in the first semester, more than half of the 293,000 cars sold in Indonesia. Indonesian car sales are expected to top 500,000 units and production 520,000 units this year, up from 420,000 last year.

Despite recent increases in fuel prices and lending interest rates, motorcycle sales rose 44 percent in the first half of this year compared to the same period last year.

The industry sold more than 3 million motorcycles in the first six months, compared to 2.1 million last year, the Indonesian Motorcycle Industry Association (AISI) said.

Despite spending more on production, Astra and Unilever managed to keep their heads above water due to higher sales which offset a possible profit slump.

BNI Securities analyst Alfatih said the main reason why Unilever had been resilient with the inflation pressure was because of its strong products, which were mostly for daily use, and were widely known in the marketplace.

However, inflationary pressure is still causing jitters among companies in the outlook for the six months ahead.

An inflation boost will automatically encourage the central bank to raise its benchmark interest rates, which will lead to more expensive loans for companies and consumers.

Bank Mandiri, cut its lending growth this year to 18 percent, from an initial 22 percent, on the back of an expected increase in interest rates and fuel prices.

However, thus far the bank has managed to enjoy a 21.9 percent rise in net profits during the first semester of this year on soaring demands for loans.

"I hope the impact (of inflation) will remain minimal. The upcoming holidays like (the Islamic) Idul Fitri and Christmas are expected to keep people on the shopping spree," Felix said.

Mushrooming infrastructure and property projects across the country will also continue to help companies endure the inflationary pressure.

State-controlled Semen Gresik, the country's largest cement maker, which posted a profit jump of 62 percent during the first half, is expected to earn more in the second half due to proliferating infrastructure projects.

National demand for cement rose 21 percent in the first semester of this year, exceeding the association's annual forecast of 7 percent for 2008.

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