JAKARTA. PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO), one of the oldest pharmaceutical companies in Indonesia, has carried out an affiliate transaction in the form of sale and purchase of stillage waste, involving two subsidiaries, PT Semarang Herbal Indo Plant (SHIP) and PT Sido Muncul Pupuk Nusantara (SMPN).

In the agreement signed on February 12, 2024, SMPN, a subsidiary that is engaged in the fertiliser production, will purchase stillage waste emitted by SHIP. For the record, the stillage waste originates from bioethanol refinery process (evaporation).

“With the stillage purchased by SMPN, it will benefit the company as we need not to discharge any waste,” added David Hidayat, President Director of SIDO, as quoted by Investor Daily.

In the official statement, the management of SIDO mentioned that said affiliate transaction is quite strategic for both parties. In terms of operational, the production facilities owned by SHIP and SMPN are neighbouring each other. That is what makes the waste transportation and refinery process easier compared to involving other parties.

According to IDNFinancials data, SIDO has allocated capital expenditure (capex) of IDR 102 billion this year. The capex will be spent on repair and addition of minor production facilities, as well as Research and Development (R&D) facility. (KR/ZH)