JAKARTA (TheInsiderStories) - The conglomeration firm, PT Barito Pacific Tbk (IDX: BRPT) prepared US$8.32 billion for business expansion in the next five years, said the management Saturday (02/06). So far, the company was able to complete seven projects with a total investment of $4.31 billion.
Finance director, David Kosasih, said the project funding will comes from strategic partner, bank loan, and internal cash. Currently, he explained, the company have three main projects, namely the Java 9 and 10 Steam Power Plant with a capacity of 2×1,000 megawatts (MW) with costs $3.28 billion.
Then, the Chandra Asri Petrochemical factory complex worth of $5 billion and the Salak Binary Geothermal Power Plant with total investment of $40 million. Barito’ involvement in Jawa 9 and 10 through PT Indo Raya Tenaga consortium in cooperation with PT Indonesia Power, the unit of state electricity producer, PT Perusahaan Listrik Negara (PLN).
The project is located in Suralaya, Banten with a debt to equity ratio of 75:25. The construction of the project has been started since October 2020 and is targeted to completed in 2023. The other project owned by PT Chandra Asri Petrochemical Tbk (IDX: CAPC), located in Cilegon, Banten, still in the pre-final investment decision stage.
The geothermal business managed by Singapore-based Star Energy Ltd., continues to explore. Currently, the project is still in the initial survey process, such as the right to match the best tender offer as a license to develop resource areas in Hamiding in North Halmahera and Sekincau in West Lampung.
President director of Barito, Agus Salim Pangestu added, apart from the expansion, the key to of the company’ future growth is efficiency. For an example, the holding company invites a strategic partners to expand the Chandra Asri’ petrochemical project.
In This year, Barito allocated capital expenditure $175 million, mostly for Chandra Asri and Star Energy. Kosasih conveyed, the new investment lower than last year amounted to $185 million. The unit, Chandra Asri, also trimmed its investment funds from $430 million to only $135 million in 2020.
In the same year, Star Energy also postponed the drilling program adjusted the capital expenditure to around $40 million from the primary budget worth of $80 million. Barito itself, had absorbed around $120 million of 2020′ budget, most allocated to complete two factories owned by Chandra Asri.
The company owned by Prajogo Pangestu was founded on April 4, 1979, under the name PT Bumi Raya Pura Mas Kalimantan. Its core business are power generation and petrochemical production, with industrial assets in renewable and resource-oriented sectors with significant growth potential through business diversification and vertical integration.
In 2007, Barito obtained majority ownership in Chandra Asri and in 2008 acquired PT Tri Polyta Indonesia Tbk, which was later merged into Chandra Asri in 2011. The unit is the largest single integrated petrochemical company in Indonesia with an installed production capacity. currently at 3,458 kilo tones per annum.
In June 2018, the company also acquired majority ownership in Star Energy, the largest geothermal company in Indonesia and the third largest in the world, which operates 875 MW of geothermal installed capacity.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
