JAKARTA (TheInsiderStories) – Local investment company, PT Pelabuhan Indonesia Investama (PII) budgeted capital expenditure around Rp1.4 trillion (US$96.55 million) in 2019. In the interview with us, President Director PII Randy Pangalila said the company eyes Shipping, loading and unloading companies, industrial estate areas, utilities, and others.
Its holding, state-owned operator PT Pelabuhan Indonesia (Pelindo) II, allowed PII to acquire up to 30 percent of the shares of private port companies and the minority shares owned by Pelindo II’ unit.
Under his leader, during 2018, PII has capital participation in a subsidiary of IPC such as PT Jasa Armada Indonesia Tbk (IDX: IPCM), and PT Indonesia Kendaraan Terminal Tbk (IDX: IPCC). While, in the final process to acquire PT Pelabuhan Tanjung Priok, PT IPC Terminal Peti Kemas, PT Jasa Peralatan Pelabuhan Indonesia, PT Pengembang Pelabuhan Indonesia and PT Pendidikan Maritim and Logistik Indonesia.
The interview as follows :
Q: When talking about organic companies, what is it like, Sir?
A: We have three assets. First, supporting the business is approximately Rp11 trillion or exactly Rp10,6 trillion. Secondly, for strategic projects there is Rp18 trillion and thirdly, for supporting businesses Rp300-400 trillion. These is just potential assets. So, totally assets reach around Rp400 trillion. While for the potential income, as has been validated by independent consulting institutions reached Rp103-173 trillion. This asset and income potential is obtained from the port sector.
Q: What is the PII’s plan for the next five years?
A: In the future PII wants to implement a holding system. In fact, currently PII has taken over 7 of 17 subsidiaries. The target is up to 10 more companies outside the subsidiaries. Then for strategic projects we will also help to fund.
Q: The government is currently building a maritime project, how does PII see the potential of the project?
A: At least the PII will be good in two regions, namely maritime power and others. There are approximately 8 National Strategic Projects, but the PII has only reviewed 2 projects and 6 others are in the process. This requires process and not necessarily.
Q: Does PII want to partner or alone?
A: Depends on the project. In the first the funds source from within is still large, so the possibility starts from the inside. But the others don’t rule out the possibility that we will invite strategic partners with other companies.
Q: Regarding the holding, Mr. Elvin said that it would be made supporting each other [synergy], how was the PII plan?
A: As PII’s principal, there are four tasks that must first be done, namely management risk, strengthening funding capacity, strengthening good corporate governance, and risk management. Therefore, before make a holding, we must do these 4 tasks. Holding is end game. But our step is proceeding.
Q: Have there been IPC talks to PII yet about where to invest?
A: I reinforce the question, namely to help Pelindo I, III, IV. For us, it’s business to business. Previously we converse with Pelindo I, even we have provided funding by buying bonds to Pelindo IV in Medan. But the problem of the merger is the ministry. But work has been done already.
Q: What are the PII portfolios outside the stocks?
A: Basically PII has 4 products: 1) buying port companies through acquisition; 2) investment in the money market or capital market or main market or second market; 3) consulting business, which is to provide consultation on the management of problematic corporate companies; and 4) financial advisory, which is to help companies that want mergers or acquisitions.
Q: It means PII also plays in securities, Sir?
A: Yes. Because those who work in PII are also very competent people in the financial sector.
Q: Then, if you look at the potential of the maritime industry, what is your views?
A: It is very big potential. We know there are 97 percent of export-import trading going on in the port. This is very promising. We can imagine the potential.
Q: What is the market share you want to take?
A: It doesn’t have to exaggerated. But we will work optimally. First we will start from Pelindo II. As we know, Pelindo II itself has a large contribution, approximately 55-60 percent of the Pelindo Group as holding. So if we help IPC, at least 60 percent of market share is there.
Q: Regarding comfortable bonds, what is sold, the subsidiary’s shares or PII?
A: Definitely, PII is not. We will sell the subsidiary and there have been discussions with certain parties. For example, giving them funding, issuing debt securities that are comfortable bond forms with outside parties.
Q: Which company is targeted?
A: Less than 6-7 sectors that we want to enter. Shipping, loading and unloading companies, industrial estate areas, utilities, and others. This is a good industry segment.
Q: About comfortable bond, what company is immediately sold?
A: Actually the bonds are of several forms: there are comfortable bonds, commercial papers, etc. These bonds are only instruments.
Q: Is there a company that wants to be acquired at the end of the year?
A: Yes. Private logistics company.
Q: How many percent do you think?
A: About 30 percent. But not yet listing.
Q: How much is the value or fund?
A: I don’t know the value yet because there is a non-disclosure agreement. Still waiting for an independent financial advisor to work for. These consists of a securities house, KJPP and a lawyer. These three [teams] have formed a consortium called international financial advisor.
Q: From the internal cost, Sir?
A: This is more than enough. There are Rp1,4 trillion.
Q: In the first quarter of 2019, is there a plan to announce?
A: Next year is a political year. Still see the politics atmosphere, what kind of political dynamics. Presumably in February or March.