Astratel Eyes Plants, New Plantations
The Jakarta Post
Jul 28, 2013
Category: Renewable & Clean Energy Environment /
EcologyEnergy & UtilitiesEco & Green
Tags: hydropower plantcoal-fired power plant
Conglomerate PT Astra International (ASII)
subsidiaries, PT Astratel Nusantara and Jakarta listed PT Astra Agro
Lestari (AALI), are preparing to expand their businesses by bidding for
new projects and assessing acquisition possibilities.
At the
moment, Astratel was expecting to complete agreements on joint ventures
with European companies to bid for power plant projects, Astra
International chief group treasury and investor relations officer Iwan
Hadiantoro said on Wednesday.
“We are looking at a hydropower
plant project in Sulawesi and a coal-fired power plant project in
Kalimantan. Each of the power plants will have a capacity of 150
megawatts,” Iwan said.
“The hydropower plant project will cost
roughly US$250 million while the coal-fired power plant will need around
$200 million,” he added.
As a 100 percent owned subsidiary,
Astratel is currently Astra’s arm on infrastructure and its related
business. Earlier in January, Astratel along with fellow subsidiary PT
Intertel Nusaperdana acquired a 100 percent stake in PT Pelabuhan
Penajam Banua Taka, which runs a port operation business in East
Kalimantan. Astratel also operates in toll roads.
In 2011,
Astratel acquired a 95 percent stake in PT Marga Hanurata Intrinsic
(MHI), which holds a license to develop a 40.5-kilometer highway
connecting Kertosono and Mojokerto in East Java.
The toll road development requires Rp 3.5 trillion (US$339 million) in total investment.
“The
toll road construction has reached about 70 percent and land clearance
about 80 percent. We hope to complete the toll road later this year and
have it in operation next year,” Iwan said.
Meanwhile, Astra’s
subsidiary in the crude palm oil (CPO) business, Astra Agro, has
expanded by acquiring a plantation area in the first half of the year,
Astra Agro head of investor relations, Rudy Lumardjo, said.
He, however, declined to reveal the size of the land.
“When
looking for a new land, we prioritize areas close to one of our
existing plantations. If it is far [from existing plantations], the size
must be big enough for us to see the economic value, which is about
5,000 hectares, so we can build a factory with a processing capacity of
20 tons of fresh palm fruit per hour,” Rudy said.
Rudy added that
the company’s expansion team was assessing opportunities for
acquisitions, including a plantation area owned by PT Bakrie Sumatera
Plantations (UNSP).
“We see all offerings and evaluate them. If
the price is a match, we can consider them,” Rudy said, adding that
Astra Agro, which is 79.68 percent owned by Astra International, expects
to see a 5 to 10 percent increase in CPO production this year.
Meanwhile,
Bakrie Sumatera is in the process of selling the assets of six
subsidiaries, which are PT Jambi Agrowijaya, PT Eramitra Agrolestari, PT
Trimitra Sumberperkasa, PT Multrada Multi Maju, PT Padang Bolak Jaya
and PT Perjapin Prima, according to its financial report.
The
companies signed sales agreements with third parties on December 18,
2012, but have yet to close the deals. Bakrie Sumatra’s financial report
for the first quarter also showed that the subsidiaries had received
payment of $29.61 million for the assets.
Indirect Sentences:
- “We are looking at a hydropower plant project in Sulawesi and a coal-fired power plant project in Kalimantan. Each of the power plants will have a capacity of 150 megawatts,” Iwan said. Indirect Sentences: Iwan says that we are looking at a hydropower plant project in Sulawesi and a coal-fired power project in Kalimantan, each of the power plants will have a capacity of 150 megawatts.
- “When looking for a new land, we prioritize areas close to one of our existing plantations. If it is far [from existing plantations], the size must be big enough for us to see the economic value, which is about 5,000 hectares, so we can build a factory with a processing capacity of 20 tons of fresh palm fruit per hour,” Rudy said. Indirect sentences: Rudy says that when looking for a new land, we prioritize areas close to one of our existing plantations, if it is far [from existing plantations], the size must be big enough for us to see the economic value, which is about 5,000 hectares, so we can build a factory with a processing capacity of 20 tons of fresh palm fruit per hour.
