Ailing state-owned shipping company PT Djakarta Lloyd intends to get back on track after settling debts in May that had been dogging the company for several years.

Djakarta Lloyd president director Arham S. Torik said on Thursday that the company planned to get back to business by shifting its business focus from being a shipping company to a logistics service provider.

Djakarta Lloyd intends to get new customers in the coming years, mainly from other state-owned companies such as Semen Indonesia and Pertamina.

'I am eyeing other state-owned companies as new customers and I hope that the state companies can synergize with each other,' Arham said after a focus group discussion attended by experts and representatives from several state-owned companies.

'Currently, I am trying to make a deal with Semen Indonesia.'

As the company is shifting its focus to being a logistics service provider, Djakarta Lloyd has no plans to add new ships to its fleet. Instead, it will focus more on improving its shipping management.

According to Arham, it would be more beneficial for the company to rent ships rather than buy new ones because the value of the ships would drop.

'It would hurt the company,' he said.

The company will also focus on improving the quality of its management by hiring capable human resources.

'The company needs employees with good character. Therefore, we will focus on developing [human resources],' he said, adding that all new employees would have to sign an integrity pact stating that they would comply with good corporate governance practices.

Djakarta Lloyd was on the brink of bankruptcy due to staggering debts incurred as a result of mismanagement. The company could not afford to pay the debts.

According to kontan.co.id, Djakarta Lloyd could only afford to pay 20 percent of its total debt of Rp 1.3 trillion owed to 100 creditors. The value of the company's assets are worth less than Rp 20 billion.

Meanwhile, Arham said the company was finally in a good financial condition. The company has a positive capital value as the company settled its huge debts after the Central Jakarta Commercial Court ruled to end its debt postponement petition (PKPU) period in May 12.

The decision was made after the creditors accepted a proposal made by the company.

According to a company statement, the creditors agreed that the debts could be paid in installments over 18 years with a five-year grace period without interest.

Based on the agreement, he said, the company also got a 32.5 percent haircut on the debt, equal to about Rp 420 billion, and a 90 percent haircut on debts owed to creditors holding medium-term notes (MTNs).

The creditors also agreed to subscribe for new shares in the company, equal to the value of the debt, known as debt-to-equity swap, he said.

'[The creditors] become shareholders but without voting rights,' he said, adding that 70 percent of the company's shares were now owned by the creditors, while the remaining 30 percent of the shares were still owned by the government.

Arham said the company currently had a contract with PT PLN to transport about 1 million tons of coal per year.

'Next year, I want to increase the contract to 2.5 million tons of coal per year,' he said, adding that the 15-year contract commenced on April 19, 2012 and could be extended.

From the contract, the company earns revenue of Rp 2 billion each month, while the company's operating costs are less than Rp 300 million per month. (ask)

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