CDIA and TPIA Drive Expansion to Singapore with $95 Million Loan

Strategic Financial Support for Regional Growth

PT Chandra Daya Investasi Tbk (CDIA) is set to expand its operations in Singapore, backed by a significant $95 million loan from its sister company, PT Chandra Asri Pacific Tbk (TPIA). This financial support, amounting to approximately Rp 1.59 trillion (based on an exchange rate of Rp 16,750 per USD), is expected to play a crucial role in CDIA's regional growth strategy.

Recent Stock Performance

Despite the positive news regarding the loan and expansion plans, CDIA's stock has experienced a decline. As of the latest trading session, the stock price dropped by 3.68% to Rp 1,700 per share. This recent decline is part of a larger five-day trend where the stock has decreased by 7.86%. The lack of significant news or announcements has contributed to the stock's downward trajectory.

Loan Details and Business Implications

The loan was disclosed through an information disclosure to the Indonesia Stock Exchange on December 22, 2023. Chandra Asri Capital Pte Ltd, a sister company of CDIA, received the loan from TPIA. This financial backing is expected to strengthen CDIA's position as it expands into the Singaporean market. The loan's substantial value underscores the commitment of TPIA to support CDIA's regional ambitions.

Market Reaction and Future Outlook

The market's reaction to the news has been muted, with CDIA's stock continuing its downward trend. Investors appear to be cautious, potentially awaiting further details on how the loan will be utilized and the expected outcomes of CDIA's expansion plans. As the situation develops, market participants will likely be watching for updates on CDIA's progress in Singapore and the overall impact on the company's financial performance.