A Company Owned By The Conglomerate TP Rachmat And Boy Thohir Is Refinancing Debts Of IDR 6.93 Trillion

TP Rachmat conglomerate. (Photo: Doc. Ministry of Industry)

JAKARTA - The domestic liquefied petroleum gas (LNG) refinery company, PT Surya Esa Perkasa Tbk (ESSA), announced it has obtained a syndicated loan facility for refinancing long-term loans through its subsidiary, PT Panca Amara Utama (PAU).

The term loan facility obtained by the company whose shares are owned by TP Rahcmat conglomerate is valued at USD 495 million or approximately IDR 6.93 trillion, assuming an average exchange rate of IDR 14,000 per US dollar. These loan facilities were arranged through syndication consisting of local and international banks.

President Director of PT Surya Esa Perkasa Tbk, Vinod Laroya said, this facility will enable PAU to have a leaner and more solid financial structure and free up debt at the parent company level.

"This new loan facility will strengthen the Company's financial position, especially in this time of uncertainty", said Vinod, in a written statement, quoted on Sunday, April 18.

Previously, the company had just signed a Memorandum of Understanding (MoU) with its business partners to invest in Carbon Capture, Utilization and Storage (CCUS) for the production of blue ammonia in Indonesia.

The signing of this cooperation was carried out with Japan Oil, Gas and Metals National Corporation (JOGMEC), Mitsubishi Corporation (MC), and the Bandung Institute of Technology (ITB).

Later the company plans to use CCUS technology to realize blue ammonia (low carbon ammonia) at the Banggai Ammonia Factory in Banggai, Central Sulawesi.

As for Surya Esa Perkasa's performance in 2020, the company still posted a net loss attributable to the owners of the parent company of USD 19.12 million or approximately IDR 267.68 billion assuming an exchange rate of IDR 14.000 per US dollar.

This achievement decreased compared to the previous year with a net profit of USD 2.64 million or approximately IDR 36.96 billion. The decline in ESSA's net profit was due to the drop in sales throughout 2020 by 20.81 percent to USD 175.51 million from USD 221.91 million previously.