Overshadowed By PKPU's Obligation, Tridomain Performance Materials Increases Production Capacity

President Director of Tridomain Performance Materials Anton Hartono (left). (Photo: Aris Nurjani/VOI)

JAKARTA - PT Tridomain Performance Materials Tbk (TDPM) has prepared funds to meet the Suspension of Debt Payment Obligations (PKPU) which will mature on December 27, 2023.

For information, TDPM has made two payments, namely the first on April 18, 2022, TDPM has paid homologation payments in the amount of 3 percent of the principal initials and the second payment for the first year of 2 percent of the principal initials on December 27, 2022.

Then it will mature on December 27, 2023, the third payment for the second year of 2.5 percent of the principal initials.

President Director of Tridomain Performance Materials Anton Hartono said that his party has prepared several strategies to improve performance next year and has prepared funds to fulfill this year's PKPU payment obligations.

"Our PKPU payment is due on December 27, we have also prepared funds and hope that Friday it can be completed and achieved for the third payment for the second year," he explained in a public expose at the Grand Sahid Hotel, Wednesday, December 20.

Anton conveyed that to be able to carry out PKPU payment obligations which will mature on December 27, 2024, 5 percent of the main initials and improve the company's future performance will increase production capacity from the current one.

"For the third year of payment on December 27, 2024. We are ready to pay because from EBITDA, it is a subsidiary and a shareholder commitment. So we just have to finish the payment," said Anton.

According to Anton, currently TDPM has two active subsidiaries, namely PT Tridomain Chemicals and PT Petronika to be able to improve future performance, which will increase the production capacity of the two subsidiaries.

Anton gave an example that currently the production capacity of Tridomain Chemicals is only 4,000 MT per year even though the capacity of Tridomain Chemicals can reach 12,000 MT per year. Meanwhile, Petronika's total production capacity can reach 40,000 MT per year and is currently only used at 25,000 MT per year.

"Next year we will increase the capacity of our two subsidiaries. Later, the capacity of Tridomain Chemicals will increase to 8,000 MT per year so that sales will increase," said Anton.

Anton conveyed that with increasing production capacity next year, it is hoped that sales and automatic income contributions from two subsidiaries can increase.

In line with that, TPDM targets EBITDA to grow at the level of 4 million US dollars to 4.5 million US dollars.

However, Anton expressed concern in carrying out payment obligations for the fifth and sixth year where in the fifth year in 2026, the company must pay 40 percent of the principal initials and 3 percent interest from the remaining principal.

Meanwhile, for the sixth year, in 2027, the company is obliged to pay 40 percent of the principal and interest initials of 40 percent of the remaining principal and all of them will mature every December 27.

"For the fifth year of payment with an interest expense of 40 percent of EBITDA is not enough. We have other plans, maybe by issuing new shares or something else, but that's still a plan," he explained.

In addition, Anton said related to the plan to increase capital for subsidiaries was postponed because they had not received approval from the Financial Services Authority (OJK).

"When we submit to the OJK to ask for approval, the approval of the capital increase. It has not been approved by the OJK, so we will repeat, something must be corrected," he said.

Anton explained that his party will rearrange and improve several requirements for increasing capital and will plan an Extraordinary General Meeting of Shareholders (EGMS) for the increase in capital at the September financial year meeting which will be held around February or March next year.