Prasidha winding down its coffee trading<\/p>\n
SINGAPORE (Dow Jones): Indonesian coffee exporter PT Prasidha
\nAneka Niaga said on Wednesday that it's winding down its coffee
\noperations, and it isn't clear at this stage if it will resume
\nfull-scale trading.<\/p>\n
A company official at its Jakarta head office said Prasidha's
\ncoffee operations in Palembang, the capital city of South
\nSumatra, has been closed since two months ago, but the company
\nhas kept some operations in its Lampung office.<\/p>\n
The provinces of Lampung, Bengkulu and South Sumatra account
\nfor 75 percent of Indonesia's coffee production.<\/p>\n
\"There are still some outstanding contracts that need to be
\nfulfilled,\" the official said.<\/p>\n
He said it is uncertain if the company will resume full-scale
\ntrading, as it is \"still negotiating with the banks.\"<\/p>\n
The company, one of Indonesia's largest coffee traders until
\ntwo years ago, has wound down its coffee business since the start
\nof the year because of financial problems, trade sources said.<\/p>\n
\"They have slowed down a lot since the economic crisis. It got
\nworse when their bank was shut down... Perhaps people aren't
\nselling coffee to them anymore,\" said a trader in Medan, North
\nSumatra.<\/p>\n
Prasidha owes a total of Rp 1.4 trillion (US$118.6 million) to
\nthe Indonesian Bank Restructuring Agency, according to figures
\nfrom Antara, Indonesia's state-owned news agency.<\/p>\n
Last October, Indonesia's central bank had ordered the closure
\nof Bank Prasidha Utama, whose owners are the Prasidha group, in a
\nbid to consolidate the banking sector in the aftermath of
\nIndonesia's crippling recession.<\/p>\n
Since 1997, Indonesia has closed 68 banks and nationalized a
\nfurther 12, issuing around Rp 650 trillion in recapitalization
\nbonds.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/prasidha-winding-down-its-coffee-trading-1447893297",
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"sponsor": "Okusi Associates",
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