As the consequence, according to Elies Lestari Setiawan, Corporate Secretary of Sierad Produce, the company decided to obtain bank loan. "We plan to seek the bank loan," said Elies, some time ago.

Even, for the last few months, the public company with its ticker code of SIPD, has seek loan from several banks, both local and foreign.  Unfortunately, Elies was not willing to name the banks. "Definitely more than one banks," she added.

But, Elies stated that SIPD seek to obtain bank loans in the amount of around Rp 200 billion - Rp 300 billion. Sierad plans to use the loan as working capital.  For information, this year, Sierad allocates working capital in the amount of Rp 200 billion to Rp 300 billion.

In the meantime, for capital expenditure, SIPD only budgeted Rp. 50 billion.  All of this fund will be spent to gather more small to medium enterprises chicken breeders in the contract-farming program. "We expect that our production volume of day old chicken (DOC) can increase by 30%, from around 900.000 weekly in last year into 1,2 million weekly this year," said Erik Surono, Managing Director SIPD.

According to Elies, the unstable market condition becomes the main factor that makes SIPD to cancel the bonds issue.  Previously, planned to issue bonds worth more than Rp 300 billion in the third or fourth quarter of 2007. According to Elies, the company is in the need of urgent funding.  The bonds issue, unfortunately shall take some time to complete.

This year, SIPD targeted that its sales will increase by 40% to reach Rp 1,54 trillion compare to Rp 1,1 trillion in 2006.  While net profit is targeted to reach Rp 61,5 billion, or up around 50% from last year.