The financial condition of PT Panca Mitra Multiperdana Tbk (PMMP), a business entity affiliated with former President Joko Widodo's youngest son, Kaesang Pangarep, is currently under the public spotlight. The company is reported to be bearing a jumbo debt burden reaching over Rp2 trillion, excluding interest obligations that must be paid.
Based on information disclosure reports on the Indonesia Stock Exchange, PMMP's debt is spread across several major banking institutions. Recorded debt to Bank Permata reached Rp929.6 billion, BCA at Rp705 billion, and the Indonesian Export-Import Bank (LPEI) at Rp537.4 billion. In addition, there are obligations to Bank SMBC Indonesia, Bank Maspion, and Bank Resona Perdania. This condition forces company management to immediately pursue debt restructuring measures to maintain business continuity.
The impact of this financial crisis is heavily felt on the company's operations. Currently, only one PMMP factory in Situbondo, East Java, is still operating. The difficult situation has also led to a wave of layoffs and the resignation of several board members, including Marketing Director Patrick Djuanda.
This phenomenon adds to a long list of Kaesang's struggling businesses after his father's leadership era ended. A number of business units that were once expansive in the past, such as Ternakkopi, Goola, Siapmas, Madhang, to the fashion brand Sang Javas, have now officially ceased operations.
Observers assess that the sustainability of these businesses was once boosted by past political momentum. However, without strong resilience, the business model pursued failed to adapt to market dynamics after the power transition, causing many of them to go out of business due to an inability to maintain long-term performance.
