Adaro Eyes Power Plants Projects In Asian Region Followed Arindo’s IPO

Garibaldi Thohir - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – President Director of publicly-listed PT Adaro Energy Tbk (IDX: ADRO) Garibaldi ‘Boy’ Thohir is eyeing power plant projects in Vietnam, Laos, Myanmar and other regional nations, looking to enter global market through its overseas investment arm Arindo Holdings, an affiliate of the company based in Mauritius.

Arindo recently raised US$12.1 million from an initial public offering at the Stock Exchange of Mauritius. The Mauritius-based company put up 1.3 million shares or equivalent to 5 per cent of its equity, at $11.45 apiece.

Arindo is an investment holding company founded in Mauritius on March 28, 2005, with the important role of facilitating investment opportunities abroad.

‘The plan requires an overseas vehicle so we use Arindo: it is in place and its listing means it is easy to raise funds,’ Boy Thohir explained on Thursday (21/12).

Adaro is targeting expansion of its logistics and power generation business, as well as optimizing its mining sites for future projects. Boy mentioned how his company intends to develop power plants in South Kalimantan, in collaboration with state-owned power producer PT Perusahaan Listrik Negara (PLN) it will focus on mine-mouth power projects in Kalimantan and several other areas across the country.

Adaro says it aims to build 5,000 megawatts (MW) of power generation capability, up from a current 2,260 MW.

A unit of investment company PT Saratoga Investama Sedaya Tbk (IDX: SRTG) just announced its intention to distribute an interim dividend of US$100.12 million for 31.99 million shares, or $0.00313 per share for fiscal year 2017, deriving from net income for the nine-month period ending Sept. 30, 2017.

On the coal market, Adaro sees the seaborne share of China as declining, while there will be an increased potential from Southeast Asia, Japan, Korea, Taiwan, and India.

Adaro has three arms to manage power plants in the country, namely, PT Makmur Sejahtera Wisesa, owner & operator of the 2x30MW at Kalsel Bhimasena Power (100 per cent); Cooperation with 2x1000MW power plant project in Central Java Jateng Power (34 per cent) and 2x100MW power plant project in South Kalimantan (65 per cent).

Indonesia still depends largely on oil to produce electricity. Efforts to source more dependable and economical energy are underway. Since 2003, the government has negotiated with 26 independent power projects.

The country is already facing an electricity crisis and blackouts, even in Java. By 2025, the nation intends to achieve 5GW of electricity from geothermal sources.

To allow private companies to sell their power directly to consumers, PLN’s monopoly will be taken down; however, independent producers will continue to have to use PLN’s transmission network.

Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com