JAKARTA. PT Solusi Sinergi Digital Tbk (WIFI), an application and internet service provider, has converted debts of its subsidiary, PT Integrasi Jaringan Ekosistem (IJE), worth IDR 132.4 billion, to equity.

Said loan was granted by WIFI in 2019 through a shareholder loan agreement. This agreement was amended three times in 2020 and 2021.

All the debts were converted to 132,400 shares worth IDR 1 million each. They represent 99.55% of total IJE’s issued and paid-up capital post-capital raise.

With this debt conversion, WIFI’s portion in IJE rises to 99.5% from the initial 90%.

In the information disclosure in Indonesia Stock Exchange (IDX), WIFI recognised that said transaction will not directly increase IJE’s working capital. “However, IJE’s financial ratio has improved due to significant decrease in liabilities, as well as significant surge in IJE’s equity,” added the management.

According to IDNFinancials data, WIFI booked cash and cash equivalent of IDR 17.71 billion as of September 2023, while total assets clocked up to IDR 1.53 trillion, and total equity reached IDR 636.74 billion. (KR/ZH)