Industrial gas producer Aneka Gas Industri (AGI) aims to benefit from the government’s efforts to boost infrastructure development nationwide by supplying gas to at least eight industrial sectors and developing hundreds of filling stations across the country following its initial public offering (IPO).

“Within the past three years, we have been expanding our business in accordance with the government’s effort to boost national development,” AGI vice president director Rachmat Harsono said in Jakarta recently.

“It’s still going to be the same, as we will keep serving eight industrial sectors by supplying various types of gases, like oxygen and nitrogen.”

AGI — a subsidiary of the diversified Samator Group that produces atmospheric gases, fuel gases and synthetic gases — has seen surging demand from various sectors recently, including transportation, construction and agriculture.

The development of basic infrastructure facilities has become one of the government’s top priorities to resolve the country’s inefficient logistics system and acute distribution bottlenecks that have seriously hampered economic development.

Earlier this year, the government issued two legal bases to expedite 225 projects listed as “national strategic projects” and a mega power plant project.

They comprise 225 projects across 13 sectors, such as railways and toll roads. The projects will receive special backing and attention from the government, as stipulated by a presidential regulation.

Rachmat said 36 percent of AGI’s revenue came from sales of its packaged gases, while 21 percent from the medical sector, 20 percent from the consumer goods sector, 14 percent from the infrastructure sector and the rest from other manufacturing sectors.

“Nitrogen is used to produce a high-grade precast concrete used for constructing tunnels, bridges and even the MRT [mass rapid transit] system. Meanwhile, oxygen can be used for combustion systems in smelters and also to produce steel,” Rachmat said.

Data from publicly listed concrete maker Waskita Beton Precast (WSBP) shows that the national demand for concrete is around 20 million to 25 million tons per year.

Moreover, Rachmat claimed that 80 percent of all hospitals across the country had ordered AGI’s oxygen products. The company also supplies carbon dioxide for carbonated drinks and nitrogen for snack packages.

AGI was officially listed on the Indonesia Stock Exchange’s (IDX) trading board on Wednesday, pocketing Rp 830 billion (US$64.08 million) in IPO proceeds, lower than the initial target of Rp 989 billion.

It has allocated 40 percent of the funds to pay internal debt, with another 40 percent for expansion and the remaining 20 percent for working capital. The expansion is aimed at increasing the number of its filling stations to 200 units by 2020 from 80 at present.

AGI currently operates 44 plants in 80 cities across 22 provinces and claims a 30 percent market share in the industry. It aims to book Rp 1.68 trillion in revenue this year, a 20 percent increase from Rp 1.4 trillion in 2015.

After the share sale, Samator group retains a 70 percent ownership of AGI. Aside from the gas business, the group controls several other companies in the real estate, automotive, chemical industry and financial services sectors. (vps)

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