Conglomeration firm, PT Barito Pacific Tbk (IDX: BRPT), allocated capital expenditure US$175 million in 2021 - Photo by the Company

JAKARTA (TheInsiderStories) – Conglomeration firm, PT Barito Pacific Tbk (IDX: BRPT), allocated capital expenditure US$175 million in 2021. The funds will be injected for its units, a petrochemical company, PT Chandra Asri Petrochemical Tbk (IDX: TPIA) and geothermal power producer, PT Star Energy.

According to the director, David Kosasih, in an official statement released today (01/20), the new investment lower than last year amounted to $185 million. Initially, the issuer prepared a capital expenditure of $525 million but due to the COVID-19 pandemic it has been cut.

The unit, Chandra Asri, also trimmed its investment funds from $430 million to only $135 million in 2020. Currently, the manufacturer develop petrochemical complex in Cilegon, Banten, in a land areas of 200 hectares. The project need an investment up to $5 billion.

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.

In the period 2020 to 2025, a number of projects belonging to the group will enter the construction stage such as coal-fired power plant Jawa 9 and 10 in Suralaya, Banten, with a capacity of 2×1,000 megawatts. The total investment is around $3.5 billion.

In August of last year, Barito has obtained a loan facility from Bangkok Bank Public Co. Ltd., amounted to $252.70 million for 60 months tenure. All funds distributed to the unit, PT Indo Raya Tenaga, to build Jawa 9 and 10 power plants, with an interest rate of 6.18 percent per annum. The parent will distribute these loans in two stages.

According to Barito, the first phase will be awarded at $183.90 million and the second phase will be valued of $68.85 million. 49 percent of the power plant company is owned by the company and 51 percent is owned by PT Indonesia Power, a unit of state firm, PT Perusahaan Listrik Negara (PLN).

The loan is secured by a pledge on the dividend receipt account in the name of the issuer. The second guarantee is pawning on the Debt Service Reserve Account in the name of the company, and the next guarantee is the pledge on shares 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. The multinational firm also has a joint venture with one of the subsidiaries of PT Indonesia Power, a wholly owned of PLN, to develop Jawa 9 and 10, one of the power plants.

US$1: Rp14,100

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