DIGIVESTASI - The stock price of PT Panca Mitra Multiperdana Tbk. (PMMP), a shrimp processing company affiliated with Kaesang Pangarep, experienced a decline ahead of the registration for regional head candidates in the 2024 Pilkada (local elections). According to RTI Business data, PMMP shares fell 2.83% to IDR 206 at the close of trading on Friday (August 23, 2024).

Throughout this week, PMMP's stock price remained stagnant, although it briefly reached a low of IDR 196 during the period of August 19–23, 2024. Year-to-date (YtD), PMMP's stock price has declined by 21.37%. The latest trading volume reached 17.26 million shares with a turnover value of IDR 3.55 billion. The price-to-earnings ratio (PER) of PMMP stands at 5.03 times, while the price-to-book value (PBV) is at 0.38 times, with a total market capitalization decreasing to IDR 533.19 billion. PMMP operates in the export-oriented consumer sector, particularly in frozen shrimp-based food processing. Established in 1997 and fully operational since 2004, PMMP has production facilities in Situbondo, East Java.

PMMP became affiliated with Kaesang Pangarep after PT Harapan Bangsa Kita, or GK Hebat, purchased 188.24 million PMMP shares on November 9, 2021, equivalent to 8% of the total issued and fully paid shares, at a price of IDR 490 per share. The total investment for this share purchase amounted to approximately IDR 92.2 billion. However, PMMP has yet to release its financial report for the first half of 2024. In the first quarter of 2024, the company recorded a net profit of US$1.66 million, down 35.94% year-on-year (YoY). PMMP's revenue also decreased by 10.1% YoY to US$49.61 million.

The decline in PMMP's stock price occurred amidst political turmoil related to the 2024 Pilkada, where Kaesang was initially mentioned as a potential candidate for a regional head position. However, his bid was blocked by a Constitutional Court (MK) ruling that set the minimum age requirement for regional head candidates at 30 years old at the time of candidate nomination for the 2024 Pilkada by the General Elections Commission (KPU). Kaesang, born on December 25, 1994, would still be four months short of this age requirement at the time of candidate registration, which is scheduled to take place on August 27–29, 2024.

As a result, Kaesang would only be 29 years old at the time of registration. There was some hope that Kaesang could run through a proposed revision of the Pilkada Law in the DPR (House of Representatives) that aimed to change the age limit for regional head candidates. However, after protests against the revision, the DPR canceled the plan, and the KPU decided to adhere to the MK's ruling. Consequently, Kaesang will not be able to participate in the 2024 Pilkada.

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