PKPU for Ricky Group
Until today the same financial problems which occurred for the past several years still haunt the textile industry. At around the same time as the public was made aware of the prolonged drama due to Sritex’s mismanagement, the drama which then forced the Government to intervene, several actors in the same industry also experienced the same issue. Now, it is the turn of textile issuer PT Ricky Putra Globalindo Tbk (RICY). Ricky Group received a lawsuit on Suspension of Debt Payment (PKPU) and had been forced to restructure its debt.
Eratani and the Future of Agritech
Eratani is one of the latest ‘success’ stories emerging from Indonesia’s agritech sector. Founded in 2021 by Andrew Soeherman and Kevin Juan Tanggo Laksono, this startup offers end-to-end agricultural solutions through its three pillars: EraFarm (access to financing and technology), EraKios (distribution of agricultural inputs), and EraMarket (market access for harvests). Through this model, Eratani aims to solve longstanding challenges faced by smallholder farmers, including limited access to capital, quality inputs, and stable markets.
EV Industry Update
The Vietnamese EV manufacturer VinFast plans to open its manufacturing plan in India by June 30, which will be followed by another plant in Indonesia in October. VinFast plans to prioritize its sales in India, Indonesia, the Philippines, and Vietnam. Meanwhile, the Company has delayed the opening of its North Carolina plant until 2028.
Supply continues to weigh on nickel
Nickel opened slightly lower to US$15,580 per ton this morning, representing 18.7% decline year-on-year, as more new smelters entering commercial operation in Indonesia this year. One smelter, which will produce 72,000 tons of nickel metal per annum will commencing production in two months time.
From LG Energy Solution to Zhejiang Huayou (2)
President Prabowo met leaders of Korean Federation of Industries at the State Palace Monday (Apr 28) days after LG Energy Solution, one of the world’s leading EV battery producers, announced its decision to pull out from US$8.4 billion nickel-to-EV project in Indonesia.
Strong first quarter for oil palm
PT Dharma Satya Nusantara Tbk (DSNG) is the first oil palm producer listed on the Indonesia Stock Exchange (IDX) to release operational and financial data for the first quarter. The company reported net profit of Rp367 billion in the quarter, surged by 60% from the corresponding period last year.
More on Alleged Corruption at the Central Bank
Towards the end of 2024, the Corruption Eradication Commission (KPK) conducted a search at Bank Indonesia. Reportedly, this activity was related to alleged corruption in the process of distributing Corporate Social Responsibility (CSR) funds from Bank Indonesia, also known as Bank Indonesia Social Program (PSBI). At the time, the Deputy for Enforcement of the KPK, Inspector General (Pol) Rudi Setiawan had mentioned that there were two suspects in this case, one of whom was a member of the House of Representatives. However, not long after, Rudi’s statement was corrected by KPK Spokesperson, Tessa Mahardhika Sugiarto. He said, there were no suspects yet and that the suspect in question was a suspect in another case that overlapped with the case at Bank Indonesia, namely alleged corruption at the Financial Services Authority (OJK). It is interesting to note that despite the differences in information and the possibility that there are suspects in the case implicating OJK, the public is only focused on the case involving the Central Bank. Not long ago, the public learned of the alleged involvement of two politicians in this case.
Peace for Rajawali Nusindo
2024 is a tough year for State-owned Enterprises (BUMN) and their subsidiaries. Many business partners are demanding debt restructuring, including against PT Rajawali Nusindo, a subsidiary of the food holding company PT Rajawali Nusantara Indonesia (Persero) (PT RNI) or ID Food. The lawsuit was filed in June 2024 and the company has entered their PKPU period since August 2024. Debt restructuring is not a simple matter, but fortunately, far from media coverage, Rajawali Nusindo was able to reach a peace agreement with the majority of its creditors last week. Now, Rajawali Nusindo must focus on completing at least Rp3 trillion of its obligations.
MBG Food Poisoning
Within just three months, more than 200 students have suffered from food poisoning because of the free nutritious meals provided by the government. Recently, 78 students in Cianjur, West Java, had to be rushed to the hospital after showing symptoms of food poisoning, such as dizziness, nausea and vomiting. While this number might be low compared to the number of students who’ve had no problem in digesting the food so far, it will be fatal if it keeps increasing. The question is: How could similar incidents happen repeatedly in such a short time?
Revisiting United Tractors
United Tractors (UNTR), a subsidiary of Astra International engaged in construction machinery supply, coal mining contracting, own coal business, gold mining, power generation, and civil construction, has appointed Ignasius Jonan, former Minister of Energy and Mineral Resources, as an Independent Commissioner. UNTR’s annual general meeting has also approved to distribute Rp2,151 per share or Rp7.8 trillion of dividends from last year’s profit, including interim dividends of Rp2.4 trillion.