75 percent of PT Bakrie & Brothers Tbk (IDX: BNBR)' debt has been restructured, said the president director on Monday (03/30) - Photo by the Company

JAKARTA (TheInsiderStories) – 75 percent of PT Bakrie & Brothers Tbk (IDX: BNBR)’ debt has been restructured, said the president director on Monday (03/30). The other loans its expected to be restructured in 2021.

For years, the firm has entangled in debt and eroded the financial condition. Based on third quarter of 2019 data, total loans of the investment company over than Rp11 trillion (US$687.5 million).

The president director, Anindya Novan Bakrie claimed, after the debt restructuring almost settle, now the company focuses on the business expansion beside the existing projects. The publicly listed firm now working on a number of prospective projects, such as Tanjung Jati A power plant in Cirebon, Central Java, gas pipeline project in Kalimantan, toll road construction and electric bus development projects.

To run the plans, the company prepared capital expenditure Rp800 billion. He explained, the power plant develop joined with Malaysia YTL Power Berhadr. Then, the electric bus through its its unit PT Bakrie Otoparts, Kalija projects by PT Bakrie Pipe Industries, and Cimanggis – Cibitung toll road joined with PT Waskita Toll Road.

He continued, Bakrie collaborating with China ’BYD Auto, owned by billionaire Warren Buffet, to produces electric bus for regional company PT Trans Jakarta. The company began to pave the electric bus in this year. 

Turn to Profit

Bakrie also reported, after five years loses, in 2019 the company posted a net profit Rp850 billion form previous year minus Rp1.21 trillion. While, the revenues roses by 14 percent to Rp , supported by Bakrie Pipe and Bakrie Metal businesses.

“This year the growth should be relatively stable. Gradually, we can improve and expand the performance,” said the president director.

For him, 2020 are the challenge rear for Bakrie & Brothers amid the COVID-19 outbreak. He noted, “We are still not able to calculate exactly how far the consequences are. Yet, it is clear that the operations of our companies are currently disrupted here and there, and some projects have the potential to be delayed.”

Written by Staff Editor, Email: theinsiderstories@gmail.com