Debt-Stricken Kaesang-Affiliated Emitter Sells Assets Worth Rp135 Billion
Jakarta — PT Panca Mitra Multiperdana Tbk. (PMMP), a frozen shrimp processing emitter, has announced the sale of assets owned by its subsidiary valued at Rp135 billion, equivalent to US$7.94 million. This action occurs amidst efforts to restructure the subsidiary’s debt.
The assets being divested comprise land covering 66,835 square metres along with buildings, machinery, and production facilities located in Situbondo Regency, East Java. The asset value represents 15.42% of the company’s negative equity, which stands at negative US$51.5 million.
“The assets comprising TMM 1, TMM2, and TMM4 serve as collateral for bank debt at BCA,” as disclosed in the Indonesia Stock Exchange transparency filing released on Monday, 16 March 2026.
The emitter affiliated with Kaesang Pangarep stated that this step forms part of the company’s operational efficiency strategy. Previously, the company had implemented workforce rationalisation, deactivation of several unused factory facilities, and debt restructuring to reduce interest burden and obtain payment extension relief.
The company explained that declining demand from the United States market since early 2024 forced the company to adjust production capacity. Consequently, the company pursued efficiency measures by concentrating production at the facility with the largest capacity capable of producing all product types.
Overall, the company operates two production facilities in Tarakan, North Kalimantan and seven facilities in Situbondo, East Java. Of the seven facilities in Situbondo, four are owned by the subsidiary company.
Beginning in early 2025, the company commenced deactivating several unused production facilities. This policy was adopted to reduce operational costs such as electricity, maintenance, and other operational expenses.
“During the debt restructuring application process, one of the subsidiary’s bank debtors requested the sale of assets serving as collateral. Following several discussions with banking parties and ultimately, given the consideration to reduce interest costs and repay a portion of the principal, the Company decided to proceed with the sale of land assets, buildings, machinery and production facilities at TMM 1, TMM 2, and TMM 4,” management explained.
Previously, PT Panca Mitra Multiperdana Tbk. (PMMP) addressed the independent auditor’s report on financial statements expressing a ‘disclaimer of opinion’. According to the Indonesia Stock Exchange disclosure, PMMP management respects auditor independence. The disclaimer opinion was issued because the auditor could not obtain sufficient and appropriate audit evidence to form an opinion on the financial statements.