JAKARTA (TheInsiderStories) — Two subsidiaries of PT Golden Plantation Tbk (IDX: GOLL), PT Bumiraya Investindo and PT Airlangga Sawit Jaya are tangled by debts, as both companies have submitted postponement of debt repayment obligations. Sluggish financial condition made Golden Plantation plans to sell its plantation estate.
According to the official statement, unit of PT Tiga Pilar Sejahtera Food Tbk (IDX: AISA) will sell its 1,900 hectares land in Muara Tebo district, Jambi province. The estimated value for it is Rp200 billion (US$14.08 million). Company targets the sales to be realized in the third quarter.
“By the sales of estate asset owned by company and subsidiary, cash flow will increase. It can help operational of other estates owned, for business continuity of company and subsidiaries,” said Golden Plantation Corporate Secretary Felicia Lukman.
Bumiraya Investindo and Airlangga Sawit Jaya have requested postponement of debt repayment obligation to Jakarta Commercial Court on Feb. 15. And starting from Feb. 26, they have been processing some trials.
Both Bumiraya Investindo and Airlangga Sawit Jaya had payment issues with fertilizer suppliers PT Bumi Tani Subur and PT Nusa Pahala Gemilang. They hold Rp5.99 billion debt arrears to Bumi Tani Subur for fertilizers, spare-parts, and chemical materials purchase.
In September 2018, Golden Plantation possesses Rp82.94 billion debts to several parties. The biggest post is Rp11.34 billion land acquisition debt. While the others are social security, rent, development project, state cash, and shares purchase debts.
Moreover, the company also has jumping accrual expenses from its bank debts. The accrual interest expenses is Rp132.87 billion, consists of Rp128.79 billion from syndication banks and Rp4.08 billion from PT Bank Negara Indonesia Tbk (IDX: BBNI).
“Company recorded interest expense in accordance with billing data from syndication banks and Bank Negara Indonesia, while company hasn’t realized the interest expense payment,” said Lukman.
Golden Plantation also has obligation over long-term debt matured in one year for Rp1.14 trillion. Lukman mentioned that company and banks are coordinating to find a solution. She added, Golden Plantation will seek for operational partnership, also divest its estate to pay the obligations.
These debt issues have hampered company’s financial report. In the third quarter, Golden Plantation revenue fell by 57.17 percent to Rp92.01 billion. Especially, the troubled Bumiraya Investindo contributes 74.59 percent of consolidation’s revenue. The condition hit Golden Plantation’s loss in swelling around four times to Rp83.09 billion.
Golden Plantation entered the palm oil business through the acquisition of Bumiraya Investindo located in South Kalimantan. The Company conducted an initial public offering of 800 million shares on Dec. 11, 2014 and then all shares were listed on the Indonesia Stock Exchange on Dec. 23, 2014.
The Company currently has nine oil palm plantations, located in South Kalimantan, Central Kalimantan, West Kalimantan, Riau, South Sumatra and Jambi with a concession area of 63,441 ha, of which 24,682 ha (or about 39 percent of the total concession area) is planted.
About 47 percent of the total planted land has yielded. The remaining undeveloped areas are land reserves that have prospects for development by the Company and Subsidiaries.
Bumiraya Investindo owns an oil palm factory with a production capacity of 30 metric ton (MT) of TBS per hour, which can be increased to 45 MT of TBS an hour. This oil palm plant has been operating since first quarter of 2013.
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