Erta Darwati, Jakarta – Polychem Indonesia said it has permanently closed its polyester division after years of operational suspension and sustained losses, marking the end of one of its core business segments.
The polyester unit has been idle since March 2022 after the prolonged impact of Covid-19 weakened downstream demand. The sector never recovered, with global oversupply, tighter import competition, and volatile raw material prices further eroding profitability. Rising crude oil prices, driven partly by extended geopolitical conflicts, also lifted input costs while demand stayed sluggish.
Vice President Director Djali Halim said the board approved the permanent shutdown on Nov. 14, concluding that the business no longer contributed positively to Polychem's long-term performance. "The polyester segment has posted consecutive losses for several years and no longer supports our financial outlook or strategic direction," he said in an IDX filing on Monday.
Djali added that the division's losses were exacerbated by weak selling prices due to global oversupply, restrictive import policies, and heavy competition from imported products. Low utilization rates and sharp swings in raw material costs also made the unit increasingly inefficient.
The decision comes as Polychem's broader financials continue to reflect pressure across its operations. The company booked $109.68 million in net sales in 2024, up from $104.80 million the previous year, but still recorded a net loss of $10.19 million, although that was an improvement from the $19.12 million loss in 2023. Meanwhile, total assets fell slightly to $155.45 million in 2024 from $158.71 million a year earlier, while accumulated losses widened to $155.50 million.
Management had attempted multiple efficiency measures and internal restructuring, but none restored profitability. Djali noted that the permanent closure will not trigger legal or financial obligations, as all commitments tied to the polyester unit have been settled.
Source: https://jakartaglobe.id/business/polychem-shuts-polyester-division-for-good-after-prolonged-losse