JAKARTA - PT Keramika Indonesia Assosiasi Tbk (KIAS) closed down one of its subsidiaries, PT Kias Serpih Mas (KSM) to reduce operating expenses. Following the decision, the company will purchase KSM's assets, pay KSM's debt, and terminate KSM's employees.
As quoted from the company's disclosure, Anusom Potchanabanpot, President Director of KIAS, stated that the decision was part of the company's business restructuring and rationalization plan. KIAS will manufacture wall and floor tiles in its factory in Karawang, and its subsidiary, KIA Keramik Mas, will manufacture ceramic roof tiles in its factories at Cileungsi and Gresik.
According to its financial statements, as of Q3 2019, KIAS recorded an operating loss of Rp 337.32 billion, higher than the figure recorded in Q3 2018 of Rp 78.60 billion. This was mainly caused by high operating expenses (Rp 318.36 billion) and cost of revenue (Rp 579.67 billion), while its revenue only reached Rp 560.71 billion. (LK/AR)