It is expected that soon this funding from MDIF will strengthen the capital structure and business development of the Company.
Arkadia's GMS Officially Approved Funding from MDIF
PT Arkadia Digital Media Tbk (IDX: DIGI) again held the agenda of General Meeting of Shareholders (GMS), on Friday, July 10, 2020. In the series of the Company's agenda this time, in addition to the Annual GMS (AGMS), an Independent GMS was also held, before it was followed by a virtual Public Expose.
Held during the pandemic with the status of Transitional Large-Scale Social Restrictions (PSBB) applied in Jakarta, the Company's agenda this time must also follow the protocol for Covid-19 measurement. Therefore, even though the GMS was held at Jambuluwuk Thamrin Hotel, Jakarta, the rules of physical distancing were strictly implemented, with part of the agenda held digitally through video conferencing media.
Started around 2:00 p.m. local time, the GMS decided to approve and endorse several important agendas. One of the specific agenda of the Independent GMS is approval of the entry of funding from Media Development Investment Fund (MDIF) Media Finance I B.V. to PT Arkadia Digital Media Tbk. MDIF, which has operated in more than 40 countries, is known as an institution committed in helping the development of independent media, and competitive, sustainable and resilient media businesses.
"We welcome the collaboration with MDIF, an institution that has a long-standing reputation and commitment in supporting the development of free and independent media globally. We have a common vision to jointly provide news, quality information needed by the community. And this funding will greatly assist the Company's effort in developing the digital ecosystem that we are currently building," said the CEO of PT Arkadia Digital Media Tbk, William Martaputra.
Wiliam explained, the funding from MDIF is in the form of convertible bonds and is mandatory in nature, which would be converted to IDR 1,400 per share. It is expected that soon this funding will strengthen the capital structure and business development of the Company.
Furthermore, COO of PT Arkadia Digital Media Tbk, Suwarjono said the inclusion of funding from MDIF is in line with the Company's development plan to strengthen regional content and regional media networks, as well as the development of news platforms to strengthen the digital ecosystem.
"Local content and media in the future are increasingly needed to balance various local government policies, encourage the active participation of communities in the region, raise local issues to the wider region and support information that is appropriate to the needs of local communities. In addition to content, it also helps sustainability for local media with a variety of media business models today," said Suwarjono.
As part of this plan, Suwarjono added, the Company is preparing a digital ecosystem that integrates news, verified information created by journalists, with community networks, local media networks, and MSME services in various regions through a news-commerce platform which is expected to become one of new business models in the area. With it, hopefully the sustainability of the media in the regions will be stronger.
Regarding the investment in PT Arkadia Digital Media Tbk, MDIF welcomes the approval of the process through the GMS forum. MDIF’s CEO, Harlan Mandel, said, "we are excited to be investing in PT Arkadia Digital Media Tbk and to support the company as it continues its growth trajectory. Our investment will enable the company to further develop its regional content and networks, providing more locally-based news and information that shines a light on issues that would otherwise be ignored."
MDIF is a not-for-profit investment fund based in New York, United States. It provides debt and equity financing to independent media companies in countries where access to free and independent media is under threat.
In addition to the investment approval, the Company's AGMS has also approved and ratified the 2019 Annual Report of PT Arkadia Digital Media Tbk, including the Financial Statements for Fiscal Year 2019. Based on the Financial Statements this time, the Company recorded a revenue of IDR 37.66 billion in 2019, with operating profit of IDR 1.35 billion.
Although the Company also has to deal with difficult business situations due to the Covid-19 pandemic, optimism expressed at the end of last year was maintained. Not just surviving, throughout 2020 so far, the Company has also been proven to continue to carry out several development steps.
In March for example, in addition to launching the new Suara.com logo, Arkadia has also launched the Iklandisini.com advertising platform. While this July, the development of several new Suara Regional pages has also begun, adding to the five that have existed since 2019.
A total of six regional media that will be launched this July are Suara Sumatera Utara, Suara Sumatera Selatan, Suara Batam, Suara Kalimantan Barat, Suara Sulawesi Selatan and Suara Bali.
Launching its first news portal namely Suara.com in 2014, PT Arkadia Digital Media Tbk is a digital media company that currently has 7 other vertical portals namely Matamata.com, Bolatimes.com, Hitekno.com, Guideku.com, Dewiku.com, Mobimoto.com and Himedik.com. In 2018 it officially became a public company and in 2019 began developing the Serbada.com news-commerce as well as developing regional media called Suara Regional. In 2020, it launched Iklandisini.com, a standalone platform for advertisers.
is a not-for-profit investment fund based in New York, United States. It provides debt and equity financing to independent media companies in countries where access to free and independent media is under threat. With more than $105 million assets under management, since 1996 MDIF has invested more than $230 million in 120 independent media businesses in 42 countries. Its investments help independent media around the world provide the news, information and debate that people need to build free, thriving societies.Back