- In 2016, Company renew its financial loan in the form of Corporate Banking Facility and Reducing Balance Loan from The Hongkong and Shanghai Banking Corporation Limited in April 2016. This renewal is a continuation from the facility that has been given to Company since Mid of 2012 which to be reviewed on yearly basis.
Both of them are secured by Hypothecation on Company’s Land and Building, and Fiduciary on the machineries, inventory and receivable.
The above mentioned pledges of Company’s asset are approved by Shareholders in an Extraordinary General Meeting of Shareholders held on November 9th, 2011 which minutes has been notarized in Deed No. 2 dated November 9th, 2011 by Novita Puspitarini, SH, Notary in South Jakarta.
The above Corporate Banking Facility and Reducing Balance Loan given to the Company in 2012 falls under Material Transaction (with exception) as per the Bapepam-LK Regulation No IX.E.2 point 3.a.3. And to comply with Bapepam-LK Regulation No. IX.E.2 point no. 3.b. and Decision of the Board of Director of PT Bursa Efek Indonesia No. Kep-306/BEJ/07-2004, Company has disclosed this transaction according to Bapepam Regulation No. X.K.1 through IDXnet on August 15th, 2012 with reference no. 253/ES/VIII/2012
- Company also obtained financial facility from PT. Bank Negara Indonesia (Persero) Tbk. in form of Letter of Credit (L/C) opening facility through the signing of Amendment to Letter of Credit Opening Facility Agreement in February 2016 as an amendment and renewal of the same facility that has been given to the Company since 2015. This facility is secured by share pledging of PT Buana Indah Garments’ share in the Company.
This bank facility also falls under Material Transaction (with exception) as per the Bapepam-LK Regulation No IX.E.2 point 3.a.3. And to comply with Bapepam-LK Regulation No. IX.E.2 point no. 3.b. and Decision of the Board of Director of PT Bursa Efek Indonesia No. Kep-306/BEJ/07-2004, Company has disclosed this transaction according to Bapepam-LK Regulation No. IX.K.1 through IDXnet on March 5th 2015 with reference letter no. 029/ES/III/2015
- For its operational activities and as its registered office in Jakarta, on October 28th 2016 Compay has made a Rental Agreement for an office space with its affiliated party PT. Ungaran Sari Garments. This transaction fall under Affiliated Transaction with value not more than 0.5% from the paid up capital of Company and not more than Rp. 5,000,000,000 (five billion Rupiah). To comply with the regulation of Financial Services Authority as stipulated in Bapepam-LK Regulation No. IX.E.1 regarding Affiliated Transaction and Certain Transaction with Conflict of Interest, Company has report this transaction to Financial Services Authority and PT. Bursa Efek Indonesia on November 1st 2016 No. 306/ES/X/2016 that has been submitted through IDXnet, SPE-OJK, and also uploaded in the website of Company.
- With the business growth of Company and the potential increase on order in the coming years, Company has started an investment to increase its production capacity. For this Company has obtained Principal Expansion Permit from Investment Coordination Board No. 168/1/IP-PL/PMA/2016 date Juli 1st 2016 for capacity increase 7,200,000 garments per year.
Transactions related to this investment fall under Material Transaction (with exception) as per the Bapepam-LK Regulation No IX.E.2 point 3.a.5. And to comply with Bapepam-LK Regulation No. IX.E.2 point no. 3.b. and Decision of the Board of Director of PT Bursa Efek Indonesia No. Kep-306/BEJ/07-2004, Company has made disclosure in accordance to OJK Regulation No. 31/POJK.04/2015 through IDXnet and Company’s website on July 15th 2016 with reference letter no. 202/ES/VII/2016.
- In December 2016 Company execute a Material and Affiliated Transaction on Loan Transaction by signing a Loan Agreement on December 30th 2016 for a loan amount US$7,000,000 (seven million US Dollar) with an affiliated party PT. Buana Indah Garments, the main and controlling shareholders of Company, as a form of support from shareholder to Company.
To comply with the requirement from Financial Services Authority stipulated in Bapepam-LK Regulation No. IX.E.2 regarding Material Transaction and Change on Main Business Activity and in Bapepam-LK Regulation No. IX.E.1 regarding Affiliated Transaction and Certain Transaction with Conflict of Interest Company has undergo fairness appraisal and obtained fairness opinion from Registered Property and Business Valuer Iskandar and Partners in its report No. 059.1/IDR/BFO/XII/2016 dated Desember 28th, 2016. Company has also made a Public Disclosure to Shareholders through an advertisement on Kontan Newspaper, IDXnet, and Company’s website on January 11 2017.