SIDO - An affiliate transaction of IDR 12.78 bn per year

SIDO - An affiliate transaction of IDR 12.78 bn per year Industri Jamu dan Farmasi Sido Muncul (SIDO), one of pharmaceutical companies in Indonesia, has executed an affiliate transaction in the form of sale and purchase contract for stillage waste, that involved 2 of its subsidiaries, Semarang Herbal Indo Plant (SHIP) and Sido Muncul Pupuk Nusantara (SMPN). The affiliate transaction' agreement was signed on February 12th, 2024, and SMPN, which business is in the fertiliser production, will purchase stillage waste emitted by SHIP. Note that, the stillage waste originates from bioethanol refinery process (evaporation). The affiliate transaction is beneficial for SIDO as it could reduces its transportation cost due to the location of both subsidiaries is next to each other, and it also could make the refinery process much more easier than buying waste from 3rd party. Moreover, SIDO has allocated around IDR102 bn for 2024' capital expenditure (capex), which the company will use it for repairing and adding several new production facility as well as Research and Development (R&D) facility. (Source : IDN Financials)