JAKARTA - PT Bukit Sentul Tbk (BKSL) is facing issues to settle Rp 1 trillion in current liabilities due to lower revenue after the company halted the operations of some of its business lines to comply with large-scale social restrictions imposed to tackle the coronavirus (COVID-19) pandemic.
According to Bukit Sentul Corporate Secretary Kwee Liana Kumala, the COVID-19 pandemic has prompted the company to suspend the operations of Neo+ Hotels, the Sentul Culture Park, Alania hotels, and Sentul City as well as restricting the sales of property in Sentul City, Bogor and Serpong, Tangerang.
The company recorded 50% and 75% drops in revenue and net profit respectively in the first quarter of 2020. In addition, its management has also slashed the salaries of 89 employees by 50% and terminated 20 out of 189 permanent and non-permanent employees as of December 2019.
To ensure operational sustainability, Bukit Sentul is currently downsizing its organisation and making effort to improve efficiency, including by renegotiating debts to creditors to obtain lower interest rates and extension of principal and interest rate repayments. (LK/MS)