JAKARTA (TheInsiderStories) - Public company, PT Bakrie & Brothers Tbk (IDX: BNBR) ready to undertakes the Cirebon - Semarang transmission pipelines project after state firm, PT Rekayasa Industri (Rekind) hand over their rights, said head of BPH Migas, Fanshurullah Asa, in a meeting with the parliament today. The construction of the pipeline become a commitment of the agency since 14 years ago.
Currently, the conglomeration firm is in the process of building the second phase of the Kalimantan - Jawa (Kalija) gas transmission pipeline. According to the director, Amri Aswono Putro, the construction of this project is still not certain caused the shortage of gas supply and demand.
In February 2020, Rekind, has conducted a groundbreaking of the project, which is located near to Semarang - Batang Toll Road. Asa assured if the project run, the government will stop gas supply to Singapore starting in 2023 to meet the domestic supplies.
The 255 kilometers-long pipe is estimating need costs Rp2.3 trillion (US$164.28 million). The gas pipelines was included in the national strategic project and will connecting pipes from Banten to East Java with a length 1,538 kilometers.
The existence of this pipeline is also to support the integration of the Trans Sumatra and Trans Java pipelines with total length of 3,574 kilometers. On March 21, 2006, BPH Migas has auctioned off transmission segments and declared Rekind as the winner with design capacity around 500 million standard cubic per day.
Currently, Bakrie & Brothers has a number prospective projects, such as Tanjung Jati A power plant in Cirebon, Central Java, gas pipeline project, toll road construction and electric bus development projects. The power plant develop with Malaysia YTL Power Berhad, the electric bus through its unit PT Bakrie Otoparts, Kalija projects by PT Bakrie Pipe Industries, and Cimanggis – Cibitung toll road joined with PT Waskita Toll Road.
The unit of Bakrie Group collaborating with China ’BYD Auto, owned by billionaire Warren Buffet, to produces electric bus for regional company PT Trans Jakarta. The business holding firm also aimed to complete the debt restructuring with a total value of Rp10 trillion and prepared capital expenditure around Rp300 billion in 2021, mostly for downstream projects and manufacturing.
The CEO, Anindya Novyan Bakrie, said on Dec. 17, stated Rp8 trillion of the debt received from Glencore International AG and the others Rp1.5 trillion was from Eurofa Capital Investment and is currently in the negotiation stage with the creditors. The group‘ total liabilities in the first nine month recorded Rp13.43 trillion, from last year was Rp12 trillion, consist of short-term liabilities of Rp12.49 trillion and long-term liabilities of Rp946.14 billion.
In May 2020, the consortium of PT Bakrie Capital Indonesia, PT Ithaca Resources, and an American international corporation, Air Products has formed a strategic alliance to build a methanol industry worth more than $2 billion in Batuta Industrial Chemical Park, in Bengalon, East Kutai Regency, East Kalimantan.
Based on the long-term contract, the group and Ithaca Resources will supply coal raw and have committed to take over the production of methanol to be marketed in Indonesia. Coal supply from PT Bumi Resources Tbk (IDX: BUMI) and Ithaca Resources and then processed by Air Products’ production facilities to be produced into methanol.
This facility will be able to produce nearly 2 million tons of methanol per year produced from nearly six million tons of coal per year.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
