JAKARTA. PT AKR Corporindo Tbk (AKRA) will not seek new funding sources through corporate actions although several loans will mature this year.
AKR Corporindo Director Suresh Vembu explained that the increase in 2018 liabilities and debts due in 2019 are short-term loans.
"This is a working capital loan, not long term and AKR pays the loan from sales bills," Mr Vembu told Kontan.co.id on Wednesday (20/3).
AKRA faces a number of debts due this year. At the end of December 2018, AKRA's short-term liabilities jumped 48.43% to Rp 8.06 trillion from the previous Rp 5.43 trillion. The surge originated from short-term bank debt which reached Rp 1.31 trillion from the previous Rp 271.49 billion. From the total, Rp 816.09 billion originated from Bank Danamon and will mature on May 28, 2019.
In addition, there are also debts from Bank Mandiri worth Rp 274.52 billion, which will mature on November 9, 2019. The bond debt of Rp. 1.5 trillion will also mature in December.
According to Mr Vembu, the company will not take corporate action because the debts are in nature for the company's capital expenditure which is renewed annually through bank funding. Mr Vembu revealed that as of December 2018, AKRA still has an internal cash of Rp 2 trillion.
In the AKRA financial report, it was explained that a loan to Bank Danamon was used for the purchase of fuel oil and chemical products, hedging transactions, project tender requirements. Likewise, the loan facility from Bank Mandiri will mature on November 9, 2019. (AM/MS)