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View all search resultsKFC Indonesia sells unit stake to firm linked to Haji Isam
The divestment comes as KFC Indonesia faces headwinds from slowing consumer demand amid boycott movements linked to the Middle East crisis.
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Food is seen on the table of a KFC restaurant in this undated photo.. (Shutterstock/File)
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T Fast Food Indonesia, the operator of the KFC franchise in the country, has sold a 15 percent stake in its chicken farming subsidiary as it grapples with mounting financial pressure and persistent losses.
The company sold 41,877 Series A shares in PT Jagonya Ayam Indonesia (JAI) to PT Shankara Fortuna Nusantara for Rp 54.4 billion (US$3.3 million), according to a disclosure to the Indonesia Stock Exchange on Wednesday. The deal took effect on June 30.
The transaction “opens up room for involving other parties in enhancing the competitiveness, operations or financial capabilities of JAI,” the company said.
Shankara Fortuna Nusantara also operates in the chicken meat and processed food sector. It is owned by Putra Rizky Bustaman and his wife, Liana Saputri, the daughter of infamous South Kalimantan businessman Andi “Haji Isam” Syamsuddin Arsyad.
Haji Isam has long maintained ties with President Prabowo Subianto, particularly since former president Joko “Jokowi” Widodo appointed Prabowo to lead the national food security program through the development of food estates in several regions. After winning the February presidential election, Prabowo enlisted Haji Isam to develop his planned food estate project in Merauke to produce rice, a plan Haji Isam quickly began executing.
Despite the sale, Fast Food Indonesia, which use FAST ticker on the Indonesia Stock Exchange (IDX), retains a 55 percent stake in JAI and remains the controlling shareholder.
Read also: Boycott continues to hit bottom lines of firms with perceived Israel ties
