Pupuk Indonesia Energi acquires Kaltim Daya Mandiri
Friday, December 16 2016 - 10:12 AM WIB
Gas Turbine Generator
PT Pupuk Indonesia Energi (PIE), a subsidiary of PT Pupuk Indonesia (Persero), acquired 51 percent shares of PT Kaltim Daya Mandiri (KDM) at a total transaction value of Rp 126.15 billion.
KDM, which is a subsidiary of PT. Pupuk Kaltim, has played an important role in providing electricity to PT. Pupuk Kaltim and other companies in the East Kalimantan (Kaltim) Industrial Estate.
KDM started its business in 1996 by developing one unit of Gas Turbine Generator at the capacity of 34 Megawatt (MW).
After two decades of operation, PT. KDM has now become a major supplier of power, water, steam and gas. Its subsidiaries include PT. KDM Argo Energi, which involves in coal trading, PT. Banyumas Energi Lestari, and PT. Mitra Daya Kencana, which involves in mini-hydro power plant (PLTM).
?This transaction should drive the growth of Pupuk Indonesia and KDM. This should give added value to the holding company and KDM," President Director of Pupuk Indonesia Holding Company, Aas Asikin said in Jakarta on Friday.
Aas said that the synergy among subsidiaries of Pupuk Indonesia should first be aimed to develop own energy for Pupuk Indonesia Group. After that, it can be expanded to providing energy for other companies.
"KDM should be growing bigger to become the energy supplier for Kujang, Pupuk Iskandar Muda, Pusri, Petro Kimiaga Gresik. That way it will help increase the performance of Pupuk Indonesia Group as a whole," he said.
Meawhile, PIE President Director Tentaminarto said that he expected the acquisition would improve the performance of the two companies.
?This acquisition is the beginning of the program to cluster the businesses of providing electricity within the group of Pupuk Indonesia, especially in the Kaltim industrial estate. ?This synergy will strengthen the position of Pupuk Indonesia Grup in agrochemical and food sectors. It will increase its competitiveness and support the government?s program of food resilience," he said.
He pointed out that PIE will develop KDM as a pioneer in the operation and maintenance of gas based power plants of the IPP. ?For us, KDM has a strategic role in increasing the financial performance of the consolidated PIE," he added.
Editing by Benget Besalicto ST