Indonesia's KFC Franchise Secures Bank Mandiri Loan Following Mass Layoffs
Reporter
June 11, 2025 | 11:24 am
TEMPO.CO, Jakarta - PT Fast Food Indonesia Tbk. (FAST), the operator of Kentucky Fried Chicken (KFC) outlets in Indonesia, has secured a credit facility from PT Bank Mandiri Tbk. The two companies signed three loan agreements on June 4, 2025.
FAST Director Wachjudi Martono said the first agreement grants the company investment credit facilities worth Rp150 billion and Rp50 billion, to be used for refinancing existing assets, including stores and the company's restaurant support center.
"The loan term is 10 years from the signing date," Wachjudi said in a disclosure to the Indonesia Stock Exchange on Tuesday, June 10.
Under the second agreement, FAST will receive Rp525 billion in credit to refinance existing loans, with a term of eight years. The third agreement provides a Rp150 billion non-revolving working capital facility, allocated for operational needs with a one-year tenor.
Previously, FAST announced it had laid off thousands of employees or PHK in 2024. Director VII Dio May Avico said the decision is aimed at streamlining the organizational structure and cut operational costs. The company, he said, needs to adapt to market dynamics and competitive pressures by reassessing the effectiveness of its human resources.
The strategy is intended to improve financial and operational performance, he added. "With a leaner, more adaptive structure, the company seeks to maintain business continuity and strengthen competitiveness amid dynamic market conditions," he said.
As of the third quarter of 2024, FAST reported a year-to-date loss of Rp558 billion. Management attributed the losses to slower-than-expected recovery from the Covid-19 pandemic and the ongoing crisis in the Middle East. "These two issues negatively affected the Group's results for the nine-month period ending September 30, 2024," the company stated in its financial report, quoted Saturday, November 9, 2024.
That amount of loss soared compared to the same period in 2023, when FAST posted a Rp152 billion loss. As of September 30, 2024, the Group's consolidated current liabilities exceeded its current assets by around Rp1.23 trillion. On December 31, 2023, FAST's total current assets were approximately Rp1.02 trillion.
Due to the losses, the sole KFC license holder in Indonesia closed 47 outlets and laid off 2,274 employees by September 2024. According to its September 2024 consolidated report, FAST operated 715 KFC outlets across Indonesia, with a remaining workforce of 13,715.
Editor’s Choice: The Colonel's Secret: Why Japan Celebrates Christmas with KFC
Click here to get the latest news updates from Tempo on Google News
