TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
PTPN III to restructure its US$1.88 billion debts
Change Size
PTPN III president director Elia Massa Manik (left) listens to State-owned Enterprises Minister Rini Soemarno in a Ramadhan event in Garut, West Java, on June 24, 2016. (Antara/Adeng Bustomi)
T
he holding company of 14 state-owned agriculture firms, PTPN III, has announced a plan to restructure Rp 25 trillion (US$1.88 billion) of debts or 75 percent of its total outstanding liabilities worth Rp 33.24 trillion.
The debts came from four state-owned lenders namely BRI, Mandiri, BNI, and BTN, and the negotiations would start next month, said PTPN III president director Elia Massa Manik.
Elia, who has been heading the company since April, said the company also tried to boost productivity by replanting and down streaming. He recently negotiated with state-owned forestry firm Perhutani to open 100,000 hectares for sugarcane plantations on Perhutani's land in Lampung, South Sumatra.
“Meanwhile, our cooking oil factory with a capacity of 600,000 metric tons, and total investments of Rp 585 billion in Sei Mangkei [North Sumatra] is also under construction and will resume operation in 2018," he told The Jakarta Post in Jakarta on Tuesday.
Elia is preparing the debt restructuring and the performance tweak as it booked Rp 36.21 trillion in sales last year, with a total loss of Rp 613 billion, despite its gigantic assets totaling Rp 109.72 trillion.
"After debt restructuring and a productivity boost, our third strategy will be operational improvement. We will restructure our talent pool, revitalize the factories, and implement SAP [System Application and Product] in data processing next year," he said. (ags)
