Kaesang-Affiliated Shrimp Company PMMP Struggles with Debt, Lays Off Workers

PT Panca Mitra Multiperdana Tbk (PMMP), a shrimp company affiliated with Kaesang Pangarep, is experiencing a working capital crunch and is saddled with bank debts amounting to trillions of rupiah. According to information disclosed to the Indonesia Stock Exchange, the company currently faces such severe working capital constraints that only one plant remains operational. The company estimates it requires US$15 million in working capital to run its operations. Management stated that its current business activities are limited to the shrimp segment, operating a single plant in Situbondo. In the interim, the company is purchasing finished products from other companies with payment made after export proceeds are received. PMMP has also been forced to lay off employees due to a decline in production capacity. Since 2024, the company has terminated 37 staff employees and 79 daily workers, while an additional 82 staff members have resigned. Despite this, management asserted there are no immediate plans to add, reduce, or change its business lines. The company also confirmed there have been no contract terminations with suppliers or buyers. The company is continuing the process of restructuring its bank loans. Management reported that the restructuring with PT Bank Permata Tbk has reached the signing stage of a credit agreement dated 22 December 2025. Restructuring efforts with PT Bank Resona Perdania, PT Bank SMBC Indonesia Tbk, PT Bank Maspion Indonesia Tbk, PT Bank Central Asia Tbk, and the Indonesian Export Financing Institution (LPEI) are still pending approval from their respective credit committees. The company also reported a decrease in its bank debt balance during the restructuring process. As of 30 September 2024, total bank debt stood at US$189.77 million and Rp159.89 billion. By 31 May 2026, the balance had decreased to US$160.13 million and Rp6.33 billion. During the restructuring, the company has repaid US$29.64 million and Rp153.56 billion in principal, excluding interest obligations. The largest outstanding loan is from PT Bank Permata Tbk, amounting to US$53.12 million and Rp5.49 billion. Regarding financial reporting, the company stated that the audit of its 2025 financial statements is still in progress and is expected to be completed by August 2026. PMMP also plans to pay administrative sanctions for late submission of financial reports in instalments. To improve its capital structure, the company is preparing strategic measures, including a rights issue and converting a portion of its trade payables into equity through a mandatory convertible note mechanism. Management emphasised that despite the funding challenges and debt restructuring, there is no other material information or fact that could affect the company’s share price or business continuity.