Intraco Penta plans to acquire power plant

By Thomas Sembiring

IDX-listed heavy equipment company PT Intraco Penta Tbk (INTA) plans to acquire an operating power plant next year as part of diversification into power plant business.

?We?re in the process of taking over a power plant which is already in operation,? said Willianto Feriansa, Director of PT Inta Resources, a subsidiary of INTA on Wednesday, but did not disclose the identity of the target.

He said that due diligence process is in progress. He added that the company will not team up with other firm in the planned acquisition.

INTA is currently developing a 2x100 MW coal-fired power plant in Bengkulu Province in partnership with Synohydro Hong Kong Ltd. The company is also participating in a tender for the development of a 2x100 MW coal-fired power plant in South Sumatra, and is seeking to participate in other tenders.

INTA has started diversification into power plant business after its heavy equipment business, which relies heavily on sales in the mining sector, has been hit by the lingering weak global coal market.

Editing by Reiner Simanjuntak