Chinese SOEs Want To Buy Sinar Mas' Power Plants For IDR 5.64 Trillion?

JAKARTA - One of the state-owned enterprises (BUMN) from China, namely China Datang Corporation, is reportedly in the process of buying majority shares in three thermal power plants in Indonesia.

Quoting Bloomberg, Tuesday, December 29, China Datang Corp is nearing the final stages of acquiring the three power plants. The value that will be disbursed by them is 400 million US dollars (Rp5.64 trillion / exchange rate of Rp14,100 per US dollar).

All of this information was conveyed by a source with knowledge of the corporate action. China Datang Corp is in further talks with one of Sinarmas Group's business entities, PT Dian Swastatika Sentosa Tbk (DSSA) for a 75 percent stake in three independent thermal power plants with a total capacity of 600 megawatts.

Reportedly, the announcement of the corporate action will be published this week. DSSA is a company engaged in the supply of electricity, mining and coal trading, wholesale trading and multimedia and infrastructure in Indonesia.

As of November 30, 2020, 59.99 percent of the company's shares were owned by PT Sinar Mas Tunggal and 40.01 percent owned by the public. The company is also involved in coal mining and trading as well as trading in fertilizers and chemicals.

Headquartered in DKI Jakarta, DSSA was listed on the Indonesia Stock Exchange (IDX) in 2009.

Meanwhile, China Datang Corp is a large-scale power generation company group founded on the partial power plant assets of the former China State Electricity Company, on December 29, 2002.

China Datang Corp is a state-owned company managed directly by the CPC Central Committee and is an official investment ratified by China's State Council. The registered capital that was paid up was 15.39 billion yuan.

They mainly specialize in businesses such as the management of state-owned assets invested by the government. The company also manages businesses in the investment, construction, service and electrical energy management sectors.