Publicly listed company, PT Astra International Tbk (IDX: ASII) has acquired 50 percent shares of PT Astra Aviva Life from its partner Aviva Plc., said the company today (03/06) - Photo by the Company

JAKARTA (TheInsiderStories) – Publicly listed company, PT Astra International Tbk (IDX: ASII) has acquired 50 percent shares of PT Astra Aviva Life from its partner Aviva Plc., said the company today (03/06). The transaction is expected to be completed in the fourth quarter of 2020.

The joint venture company has set up in 2014. The deal is part of the conditional completion of Bangkok Bank Public Co. Ltd’ acquisition of the other unit, PT Bank Permata Tbk (IDX: BNLI), Aviva Indonesia’ bancassurance partner. On March 5, the shareholders of Bangkok Bank approved the acquisition of the local lender.

Since last year, Astra start to look another businesses, replacing the businesses that are starting to fade. Through its subsidiary PT Astra Digital Internasional, the issuer is ready to develop four digital platforms as innovative products to meet the community’ demand.

While, its infrastructure arm, PT Astra Tol Nusantara ready to expand the port business in line with the planned move of the country’ capital to East Kalimantan. Currently, the builder has run by PT Pelabuhan Penajam Banua Taka or also known as Astra Infra Eastkal.

in 2019, Astra Group has invests US$7.5 billion, through the holding company and its subsidiary. With seven business lines and over than 200 companies, said the director, Paulus Bambang, now the public listed company has a market cap $20 billion.

He also mentioned, lot of opportunities in Indonesia, such as heavy equipment, mining, renewable Energy, digital, transit oriented development along mass rapid and light rapid transit and toll road areas, and other infrastructure projects.

“Astra’ investment still focus in Indonesia,” he adds.

During 2019, Bambang continued, Astra hold market shares in four wheels 53 percent and two wheels 75 percent through automotive division. From mining unit, the company produced coal 96 metric tons (MT) of coal, overburden removal 750 million Bcm, and gold sales 306 kilos.

From agribusiness division, PT Astra Agro Lestari Tbk (IDX: AALI) has produced 1.3 MT of palm oil, also crude palm oil and derivatives 1.7 MT. Its infrastructure unit, PT Astra Infra, has build toll roads with long 350 kilometers, manage one port, and warehouse management.

Last year, the company prepared capital expenditure around Rp27 trillion ($1.93 billion). Part of has spent on the digital business. Astra has entered the digital business by investing in the ride-hailing provider GOJEK worth of $250 million.

Talking on its core business, the president director, Prijono Sugiharto, believed that the Indonesian market still prospective for four and two-wheels vehicle. He stated, “Car sales are still prospective and will prepare investment for it.”

In other sectors, he said, the manufacturer will continue looking infrastructure projects and other potential business. In toll project, he claimed, Astra would manage 1,200 kilometers of toll road across the nation manage by PT Astra Infra.

Two toll road projects, Kunciran – Serpong toll road in Jakarta area and Surabaya – Moncokerto in East Java will operate. While PT United Tractors Tbk’ (IDX: UNTR) power plant project joined with Japan’ Sumitomo Corp. and Kansai Electric Power Co. Inc. with total capacity 1,200 megawatts will operate soon.

Sugiharto believed the new businesses will support its financial performance in the future. in the first half of 2019, the company profit dropped six percent to Rp10.38 trillion from prior year amid the lower commodity price, coal, heavy equipment, and car sales.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com