Sounds far-fetched? Well, it is just a case of some intelligent restructuring, says Ispat Indo's chief financial officer, Adi Narayanan. "We do face a problem in terms of a drastic decline in domestic demand. So we got round the problem by increasing our export component from 30 to 98 per cent." And so optimistic is he of the success of this strategy that he expects the company to record profits to the tune of $230 million this year.

Indeed, Ispat Indo's story is not an unusualone. Most Indian corporates and joint ventures in Indonesia are seeking to export their way out of the current economic crisis. Aiding them is the depreciation of the rupiah, and the low labour costs, as also plenty of unutilised capacity, which makes the sales readjustment process extremely competitive in the global market.

Texmaco, the diversified textile and synthetic fibre conglomerate which employs the largest number of Indian expats in Indonesia, also had to resort to an export push to survive the downturn. As Chairman M Sinivasan reveals, "We've slowed down our capital expansion, and investments in capital projects will be prioritised with an export focus for the next 2-3 years, by then I expect the economy to rebound." Texmaco's export estimates for the current year have shot up from 40 to 70 per cent, making it possible for the company to reach the target of $400-500 million in 1998. By the year 2000, Sinivasan hopes, exports will rake in $1 billion.

Indo Rama Synthetics' president Vinod Laroya,is resorting to a similar panacea to address the decline in domestic demand. From 58 per cent, the share of exports in the company's sales has gone up to 80 per cent. But according to Laroya, this is not a reorientation for Indo Rama, which is already the highest export earner in Indonesia, having notched $210 million in 1997. "We are merely extending our company's already existing focus on exports a little further. And we really have no cause for worry, as thanks to our prudent management of finances, we have paid off every single loan up to yesterday." He expects the revised export target to yield $250-260 million in 1998, taking into account the dipping prices for polyester products in the region.

Indo-Bharat Rayon, the Jakarta-based subsidiary of the Birla group, did not have to adopt quite the same strategy to keep afloat amid the ongoing turbulence. Finance Manager Sunil Aggarwal points out that earlier the company exported 20 per cent of its products, chiefly viscose, rayon fibre and chemicals, todayas much as 30 per cent heads for the overseas markets. "Since the local sales was done in rupiah, we faced a problem in replenishing our depleting dollar reserves. But we got round it by getting our local customers to pay in dollars, so that we wouldn't be affected by the fluctuations in rupiah value," he says.

Another strategy resorted to by Indian corporates in Indonesia is a reorientation of market exposure. For instance, while Ispat Indo used to traditionally direct exports towards Taiwan, Korea, and other Asian countries, it is now looking more seriously at European and US markets, which are unaffected by the Asian contagion. Other companies too are turning this economic setback into an opportunity, exploring markets which they had so far relegated to the back burner.