Company Owned By Puan Maharani's Husband Wants To Annex Krakatau Steel's Subsidiary, How Much Is It Worth?

JAKARTA - The company providing oil and gas distribution services owned by Puan Maharani's husband, Hapsoro Sukmonohadi, namely PT Rukun Raharja Tbk (RAJA) explained a number of investment plans that the company will undertake in the next few years. One of them, they will acquire PT Krakatau Tirta Industri, a subsidiary of PT Krakatau Steel Tbk (KRAS).

In the disclosure of information on the Indonesia Stock Exchange (IDX) website, quoted on Monday 15 August, it was stated that RAJA had started the study of the Central Jabung block in Jambi from July 2022 to December 2022, which cost 300 thousand US dollars. RAJA predicts that exploration and development of oil and gas fields will take about 5 years after the study is completed.

"So, the bookkeeping of revenues from this sector will begin in 2027," explained the management of RAJA in the disclosure of information.

In addition, RAJA is also involved in a joint tender for the procurement of the Tanjung Batu-Samarinda fuel pipeline with an investment of 101 million US dollars. The project has an estimated time of completion of the agreement in June 2022 to April 2023.

With 75 percent ownership, RAJA can record revenue on this project in June 2026 with a revenue contribution of 4.9 percent and a net profit of 13.4 percent.

Then, the CNG base station project in Grobogan, Central Java, worth US$5 million, has an estimated time of completion of the agreement in October 2022 to May 2023. The company has been able to record revenue from this project in June 2023 with a revenue contribution of around 1.53 percent and a net profit of Rp. 0.8 percent.

Furthermore, RAJA also reviewed the potential acquisition of PT Krakatau Tirta Industri in Cilegon, Banten. RAJA plans to invest 135 million US dollars equivalent to Rp2 trillion with an estimated time for completion of the agreement in December this year.

"The operating results will be recorded as investment income with a company ownership of 49 percent. The contribution of this project can be recorded in April 2023 with a total investment income of 69.6 percent and a net profit of 44.1 percent," explained RAJA's management.

RAJA also spent an investment of US$ 8 million for the acquisition of a CNG base station in Cikarang, West Java. This project has an estimated completion of the agreement in October 2022 and revenue can be recorded in November 2022. Finally, around 15 million - 20 million US dollars was invested for new gas pipeline and gas trading customers in Riau.

This project has an estimated completion of the agreement in December 2022 and revenue can be recorded from January 2024 with a contribution to total net profit of 6 percent and revenue of 17.9 percent.