Adding New Business, BEEF Wins IDR 790 Billion Credit

JAKARTA - The plan of PT Esteka Tata Tiara Tbk (BEEF) to penetrate new businesses has become smoother after receiving additional credit facilities of IDR 790 billion from Bank Mandiri. The facility consists of a transactional working capital loan of IDR 400 billion and an Investment-2 credit facility worth IDR 390 billion.

This was stated in a credit return agreement between BEEF management and Bank Mandiri which was reduced on October 29, 2025. Previously, BEEF obtained a credit facility from Bank Mandiri worth IDR 400 billion based on a credit agreement on February 29, 2024.

The President Director of BEEF, Imam Subowo, said that the company's credit facility from Bank Mandiri will be used for working capital and increase new business line development funds, namely dairy cows and derivative products, buffalo breeding and the development of a cooling warehouse chain.

"The addition of our credit facilities is a form of confidence in the company's recent performance growth," he said in an official statement, Thursday, October 30.

He continued to use the credit facility in line with the company's Extraordinary General Meeting of Shareholders (EGMS) on November 14, 2025 to ask for the approval of investors regarding the addition of business lines in accordance with KLBI.

"We will add KBLI for the dairy cow business that produces milk as a nutritious food source. Second, KBLI for buffalo breeding and cooling warehouse chain development," said Iman.

Iman explained that to penetrate the 3 new business lines, the company needed investment funds worth IDR 319.7 billion. As for the source of the funds, 60 percent of the total investment came from bank debt and the remaining 40 percent spent the company's internal cash.

"We assume that the payback period 3 of the new business line is in 3 years and 9 months with a break event point of IDR 2.915 billion," said Iman.

Furthermore, Iman said the 3 new business lines began to increase the company's revenue in 2026 by IDR 83.328 billion. Additional income from 3 new business lines is estimated to increase to IDR 180.76 billion in 2027. 2028 rose to IDR 220.6 billion.

"This new business line has started to provide additional net profit of IDR 15.36 billion in 2026, IDR 90.48 billion in 2027 and IDR 120.63 billion in 2028," he concluded.