Parent company, PT Medco Energi Internasional has attributed the closures of the plant to insufficiency of sustainable feedstock supply, namely cassavas and molasses for ethanol production.
The move implicates that PT Medco Downstream and its subsidiaries shall no longer operate its downstream activities.
With respect to the financial impact of the ethanol plant in the 2013 annual statement, the company said that it will reclassify the impacted subsidiaries accounts in the statement under non-current assets held for sale and discontinued operations.
