JAKARTA. PT Lippo Karawaci Tbk (LPKR) 's total debt rose by 37% to Rp 7.74 trillion, after the company announced that it recorded a loss of Rp 1.25 trillion in the first half (1H) of 2020. The company's debt to equity ratio also rose to 0.9 times.
Ketut Budi Wijaya, President Director of LPKR, explained that the increase in the company's debt was caused by the adoption of PSAK 73, which raised the company's short-term and long-term financial liabilities increased to Rp 4.87 trillion.
In addition, the increase in the company's debt was also caused by the increase in the customer's advance liability to Rp 2.65 trillion. "[The increase in customer advances] was caused by the impact of the adoption of PSAK 72," Wijaya said in the company's letter to the Indonesia Stock Exchange (IDX).
During 1H 2020, LPKR also withdrew loan facilities from PT Bank Mandiri (Persero) Tbk (BMRI) (Rp 400 billion) and PT Bank Negara Indonesia (Persero) Tbk (BBNI) (Rp 170 billion). (KR/AR)