JAKARTA. Growing financial expenses due to debt caused PT Krakatau Steel Tbk (KRAS), a state-owned enterprise (BUMN) to suffer losses for 7 consecutive years since 2012.
The financial expenses recorded by KRAS in 2018 reached US$ 112.33 million, equivalent to Rp. 1.57 trillion (assuming the exchange rate of Rp. 14,000 / US$, more than double its number from 8 years ago (2011) which was only US$ 40.62 million.
The increase in financial expenses is, of course, inseparable from the company's debt, since most of the company's financial expenses are interest expenses.
The financial statements revealed that the company's short-term debt reached US$ 1.59 billion, equivalent to Rp. 22.26 trillion, while its long-term debt was US$ 899.43 million or Rp. 12.59 trillion. Of the short-term debt, 71% are loans obtained from banks, either on behalf of the company or its subsidiaries.
The majority of the short-term debt from banks are in the form of imported Letter of Credit (LoC), and working capital loans, both rupiah and US dollar-based. (AM/AR)