JAKARTA (TheInsiderStories) – State owned construction and investment firm PT PP Tbk (IDX: PTPP) plans to set up a new subsidiary to run its energy business venture, called PT PP Energy.
The company’s Marketing Director W. Karloka said that PTPP will inject new capital Rp1.5 trillion in the new subsidiary to seek new business in three years period.
The new unit eyes two power plant projects in 2016 with capacity 2×200 megawatts (MW) in West Kalimantan with total costs of Rp5 trillion ($362.32 million). At present, PTPP owns two power plant projects in Lampung and South Sumatera with total capacity of 90 MW.
Director for Business Development, Research & Technology Lukman Hidayat added that in 2016 PTPP eyes new contract worth Rp30 trillion and carried-over projects from 2015 worth Rp25 trillion, mostly infrastructure projects such as toll road, port, power plant and property. The funding for the projects comes from the rights issue, bank loan and internal cash.
PTPP plan to raise funds from rights issue of Rp2.25 trillion in 2016 and a plan to raise funds from bond market if parliament rejects the capital injection from the government worth Rp1 trillion in State Budget for 2016.
On Friday, PTPP and Jakarta provincial government’s owned company PT Jakarta Property (Jakpro) signed an agreement to set up new joint venture company (JV) to build property business in Greater Jakarta areas.
Chief executive of Jakpro Abdul Hadi explained that Jakpro and PTPP are planning to jointly build residential or low-cost flat project like the one that was developed by PT Jakarta Industrial Estate Pulogadung (JIEP) and Marunda and other areas. He explained that both companies are still calculating the investment of project, which is scheduled to be built in 2016.
“We also discuss on how to generate power or electricity from waste,” he said.
This step, he said, is part of Jakpro’s plan to monetize the company assets and list the shares on the Indonesian Stock Exchange in the near future. He, however, denies to explain further about the time table of the IPO plan. (*)