Prajogo Pangestu Company Is Currently Working On Java PLTU, Budgeting For Capex Of IDR 12 Trillion Until 2025

Prajogo Pangestu Conglomerate. (Photo: Doc. Antara)

JAKARTA - A company owned by conglomerate Prajogo Pangestu, PT Barito Pacific Tbk, is accelerating several projects in the energy and petrochemical business segments. The issuer coded as BRPT shares is currently building a Java 9 and 10 Steam Power Plant (PLTU) project.

Barito Pacific Finance Director David Kosasih said that the construction of the PLTU, located in Banten, had started in October 2020. BRPT is targeting the commercial operation date (COD) of the 2x1,000 MW project in 2025.

Furthermore, David said, this PLTU costs an investment of $ 3.3 billion and is financed by competitive long-term limited project funding based on debt to equity ratio of 75:25, in line with Indonesia's electricity projects.

PLTU Java 9 and 10 are some of the National Strategic Projects (PSN) which are believed to be able to boost the economy in Banten province because they involve thousands of local people. The Banten Provincial Government (Pemprov) and businessmen believe that the construction of this plant can be a solution to overcoming unemployment and the regional economy which is worsening due to the current prolonged COVID-19 pandemic.

Chairman of the Association of Indigenous Indonesian Entrepreneurs (HIPPI) of the DPD (Regional Representative Council) Banten, Syaiful Bahri, in a written statement some time ago said that the construction of this new PLTU also opened up opportunities for local entrepreneurs to be able to engage in various jobs.

Subsidiary projects and capital expenditures

Through its subsidiary, Star Energy, as quoted from kontan.co.id, Barito Pacific also plans to develop exploration of the Salak Binary geothermal power plant.

The project with a capacity of 15 Megawatts (MW) is still in the pre-Financial Investment Decision (FID) stage and costs an investment of 40 million. The target for completion of this project is in 2022.

Meanwhile, two new geothermal exploration projects, namely PT Star Energy Suoh Sekincau, West Lampung and PT Star Energy Geothermal Indonesia for Hamiding, North Halmahera, have completed a preliminary survey and are entitled to match the best tender offer for a permit to develop a working area.

BRPT's plan to build a new petrochemical plant through its other subsidiary, namely PT Chandra Asri Petrochemical Tbk (TPIA) is also still ongoing. David said the US $ 5 billion project was in the FID stage and was targeted for completion in 2025 or 2026.

These projects are a clear proof of Barito Pacific in supporting its growth strategy. So, when accumulated, BRPT allocates around $ 8 billion for capital expenditures or the equivalent of IDR 112 trillion by 2025.