JAKARTA. PT Primarindo Asia Infrastructure Tbk (BIMA), a shoe manufacturer operating since 1989, will divest some of its landbank to pay its obligations to creditors and suppliers.

The management of BIMA confirmed that the assets include two lots of landbank and a building located in Bandung, West Java. The two lots cover 17,253 square metres and 10,705 square metres, while the building has an area of 5,411 square metres.

The transaction reportedly totals IR 64.23 billion. The divestment will be carried out either directly by the company or by assigned property agent.

It is worth mentioning that this asset divestment is carried out following the weakened purchasing power of the masses. Furthermore, BIMA believes that the competition in the footwear industry is becoming fiercer, even more so with increases in imported products. These factors resulted in the delay of obligation fulfilment to several creditors and vendors.

“In order to manage this issue, the company intends to sell some of its assets,” added the management of BIMA in the official statement.

The allocation of the proceeds of this divestment is as following: IDR 11.78 billion will be used to pay obligations to PT Perusahaan Pengelola Aset, while the remaining will be used to pay some other debts owed to suppliers, employees, Social Security Administrator for Employment (BPJS Ketenagakerjaan), etc. (KR/ZH)