Posted January 24, 2019 04:50:13In May 2017, Indonesian seafood processing giant Papaya International closed its processing plant in the island nation of Bali, as its production capacity dwindled.
In early 2018, an Indonesian conglomerate bought a controlling stake in Papaya for $8.3 billion, which it plans to use to develop a processing facility for papayas, which has been called “one of the world’s largest and most important producers of papaya”.
The deal, which was revealed in January 2018, raised questions about the future of the Papaya plant and whether the government can support the company and its future.
It also led to speculation about whether Indonesia might allow the development of an international marketplace for Papaya’s products.
In a letter to the government, Papaya chairman Anil Kondipani suggested that the company’s future in Indonesia could be in doubt if the deal with the Indonesian conglomerate goes ahead.
Kondipi said the deal had been agreed in principle with the government and would be submitted to the relevant regulatory authorities, but that it was still possible for Papayas future in the country to be put in jeopardy.
“It’s a legal process that could not go ahead in this situation,” Kondipsi said.
The letter said that the proposed project would be based in Bali and that Papaya could be forced to abandon the facility if it does not comply with all conditions, including “not taking the necessary steps to develop the facility”.
“This is the last opportunity for the company to go ahead with its operations in Indonesia,” he said.
“In this case, Papayahas future depends on the fact that we do not have the right to operate in Indonesia.”
In a statement, the Indonesian government said it was “unable to accept” the Papayakas plan.
“The Indonesian government is unable to accept the proposal,” it said.
Indonesia’s ministry of environment and climate change said it had received “a very strong and credible” report from the company, which is still seeking the approval of local authorities to operate its processing facility.
It said the government had already submitted its request for the approval, which would allow the company “to resume its operations as a normal business” in the future.
Indonesian officials said they were aware of the issue, but were still awaiting the companys final decision.
Papaya International’s closure in Bauchi island in June 2018 left thousands of employees without work.
The company, founded in 1989, has produced over 400 million tonnes of papaya and papaya pulp, as well as seafood products including crab, crab legs, mussels, shrimp, fish and fish meal.
According to the Jakarta Post, the closure has also affected Papaya Indonesia’s financial prospects.
Kondipsis statement said that Papayat’s management and shareholders have expressed their “deep concern” over the shutdown.
“The management and management of Papaya have stated that they will not proceed with the plans and have instructed the management to proceed with their plans to develop Papaya in the best interests of the company,” he wrote.
“We are hopeful that the government will reconsider this matter and act to facilitate the Papayanas future operations.”
IndONESIA’S PRESIDENT SAYS PAPAYA RESCUE PLAN WON’T WORK In May 2018, Indonesia’s president, Joko Widodo, announced a rescue plan to save the Papal family’s operation in the Papas new production facility.
The Papaya project is expected to be the countrys biggest seafood business, but its closure has forced hundreds of thousands of Indonesians to turn to imports.
President Joko “Jokowi” Widodo said in an interview with The Jakarta Post on Thursday that he was still hopeful that Papayanos future in Bausi would be allowed to go forward.
“That’s a very difficult decision for the Papays, and for Indonesia,” Mr Widodo told the newspaper.
“But it’s going to be allowed because the Papaynas management and Papayaks management has indicated that it’s not in their interest to close the plant and so they’re going to work to find a solution that allows the plant to go on.”
The company has been in talks with the Federal government for over a year to reopen the plant.
Under a plan outlined in a memorandum of understanding signed in March 2018, Papayana would be re-opened once it was certified as a commercial operation by the Indonesian Department of Fisheries and Aquatic Resources (DAR) and the Indonesian Marine Development Authority (AMDA).
The memorandum of agreement, which had been signed by Indonesia’s two fisheries ministers, also envisaged that Papyas annual production of up to 1.5 million tonnes would be exported to countries such as Canada and