The parent company owns 99 percent shares of PII, while another subsidiary, PT Multi Terminal Indonesia, controls the remaining one percent.

PII — the 17th subsidiary of Pelindo II — is expected to allow faster and flexible fund raising to help finance the expansion of other subsidiaries.

“PII mainly aims to optimize the financial management and investment within the Pelindo Group,” Pelindo II president director Elvyn G Masassya said at the launch of the firm on Monday.

Furthermore, the new subsidiary is set to support the company’s inorganic growth by way of tapping into the logistics sector, such as the management of terminals and ports.

Pelindo II, also known as Indonesia Port Corporation (IPC), revealed that it had conducted studies on 10 companies that it potentially acquired.

However, Elvyn declined to elaborate.

In the all of the acquisitions, the new entity would hold a minority investment with a maximum 30 percent stake, PII president commissioner Iman Rachman said, adding that the firm would not compete with banks or securities companies.

In the first stage, PII will manage up to Rp 1.5 trillion (US$110.7 million) in total assets. Of this figure, Rp 200 billion will come from paid-up capital, while the rest will derive from shareholders’ loans.

“We target to manage up to Rp 20 trillion in assets by 2022 with a return on equity of 16 percent,” PII president director Randy Pangalila said.

Apart from the establishment of PII, Pelindo II will also exercise a corporate action by listing its subsidiary, seaport services provider PT Jasa Armada Indonesia (JAI), on the bourse soon.

Through the initial public offering (IPO), JAI will release 1.74 billion shares, equivalent to 30 percent of its total paid-up capital, in order to raise a maximum of Rp 924.31 billion in fresh funds.

Elvyn said not only retail investors, but many institutional investors had also expressed an interest to purchase the shares.

Two other Pelindo II’s subsidiaries are set to follow JAI’s step to go public in 2018 and 2019.

Currently, Pelindo II is working on at least three key projects, namely the development of Kijing Port in West Kalimantan and the construction of the Cikarang-Bekasi Laut inland waterway and the Maritime Tower at Tanjung Priok Port in North Jakarta.

For next year, it has allocated a total investment of Rp 11.5 trillion to, among others, fund the three projects in addition to some more projects.

Pelindo II will use its internal cash reserves to finance all the projects.

The company hopes to increase its revenue by 12 percent in 2018 from Rp 10.56 trillion projected for this year.

As of October, its revenue stood at Rp 8.9 trillion, while its earnings before interest, tax, depreciation and amortization (EBITDA) amounted to Rp 3.4 trillion.

“In terms of throughput, we hope that the container volume can reach seven million twenty-feet equivalent units [TEUs],” Elvyn said.

To reach the target, the company will continuously lure large ships to enter Jakarta ports, modernize its existing ports, primarily in regions, and help industry players to distribute their products easily through the ports under its portfolio.

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