Rukun Raharja to acquire power plant

PT Rukun Raharja Tbk plans to acquire a power plant and a gas pipeline as part of the company?s expansion in energy distribution business, Bisnis Indonesia reported on Monday.

The company?s President Director Budiman Parhusip said that with the acquisition the company?s total revenues are expected to increase by 50 percent to Rp 1.19 trillion from Rp 796.7 billion last year, while net profit is expected to rise four-fold to Rp 64 billion from Rp 16 billion last year.

?We could not yet reveal the location of the power plant, but we will soon announce it,? he said, adding that the company was also in negotiation to acquire a company which owns a gas pipeline. The company will allocate between $30 million and $50 million for the acquisition.

Established as a real estate developer, Rukun Raharja changed its core business to energy provider in 2010. The company has built and operated a gas pipeline to provide gas to consumers.(*)