The pandemic also attacked issuers engaged in the textile segment. Including PT Cottonindo Ariesta Tbk (KPAS) which temporarily disabled production operations.

The deactivation of production operations is inseparable from the performance of KPAS which has decreased from 2020 and entered 2021. The decline continued from the first quarter and continued into the second quarter of 2021. The decline in performance also continued into the third quarter, namely in July 2021 and August 2021.

KPAS Corporate Secretary Johan Kurniawan said that his party had taken strategic steps by limiting work in the production division in the last two months at the factory work site and the marketing division. KPAS also limits its operations to a limited scale. This resulted in a significant decrease in the company's output.

Johan continued, in July-August 2021, only the finance department and part of the company's operations were operating. While the factory part has been disabled. The company's leadership has been and continues to seek additional fresh funds to gradually restore factory operations and take strategic steps to maintain the company's going concern.

"Company leaders who are also company founders are trying to collaborate with strategic parties in order to bring in funds for the company's operational interests," Johan wrote.

The consequences of the steps taken by temporarily stopping production/factory operations have an impact on a number of KPAS business lines. First, the financial impact in the form of delays in payment of obligations to external and internal parties, resulting in the inability of KPAS to fulfill its obligations in the near future.

Second, the business impact and going concern. Due to the zero production output or temporary output or the very limited number of production outputs (not significant), KPAS is unable to fulfill orders from its clients. This will eventually lead to non-payment of bills for the company.

"This will have an impact on the company's paralysis and will not be able to maintain the company's going concern going forward," continued Johan.

KPAS seeks the entry of fresh funds into the company, starting from the sale of company-owned assets (which are not pledged), to collaborating with strategic partners to enter funds in a short time to overcome the company's financial problems.