JAKARTA – PT Cottonindo Ariesta Tbk (KPAS), a cotton manufacturer, projected its sales not to be fully normalised even in the next year after the COVID-19 pandemic hit and adversely affected its performance last year. Corporate Secretary of Cottonindo Ariesta, Johan Kurniawan, admits in the information disclosure, quoted Friday (1/10).
“In 2022, the company would get back to its position by at least 70% of the domestic market, gradually, before reexploring the export market,” Kurniawan stated.
According to Kurniawan, the said target would be hand-in-hand with the financial position improvement considering the scenario of the pandemic staying even in the upcoming year. However, his company is optimistic that it would be 100% recovered by 2023, just as before the COVID-19 spread.
Currently, the operational of KPAS’s factories are being halted, causing the factory utilisation to fall below the installed capacity. This condition then leads to a declining financial situation and an inability to fulfil its obligations. As of June 2021, KPAS secured IDR 19.36 billion in revenue, much lower than the gain reported in H1 2020 of IDR 35.79 billion.
“If the company gradually recommenced its operation in the near future, the factory operational would reach 20% to 30% at the beginning,” Kurniawan predicted. (LK/ZH)