Toba Sejahtra, a group controlled by the family of Coordinating Maritime Affairs Minister Luhut Pandjaitan, plans to expand its operations in the electricity industry through its two subsidiaries PT Kartanegara Energi Perkasa (KEP) and PT Toba Bara Sejahtra.

Independent power producer KEP announced on Monday the expansion in the capacity of its Senipah gas and coal-fired power plants (PLTGU Senipah) in East Kalimantan to 117 megawatts (MW) from the current 82 MW.

“In 2017, we will expand the capacity of PLTGU Senipah by 35 MW, so we hope that by the end of 2018, the capacity reaches 117 MW,” KEP director Renzi Renditya said during the financial closing event of PLTGU Senipah.

“The expansion is expected to meet the projected growth in electricity demand of about 10 percent per year in that region.”

The 35-MW capacity expansion will cost US$66 million. KEP has obtained funding from state-owned lenders Bank Negara Indonesia, as the loan’s lead arranger, and Bank Rakyat Indonesia.

The company reached on Sept. 22 the financial closing, in which it received a confirmation from the banks for the project financing. The expansion is scheduled for construction in 2018, while commercial operations of the plant are set for 2019.

KEP director Juli Oktarina said that PLTGU Senipah generated $3.5 million in revenue per month. The company projects to book $5 million in revenue per month after the capacity expands to 117 MW.

Meanwhile, Toba Bara, the only listed subsidiary of Toba Sejahtra Group, has shifted its business portfolio from mining to electricity generation. It will use a significant majority of its capital expenditure (capex) next year to develop power plants.

“Our focus for the next two years is to build power plants that are part of the government’s 35,000-MW program,” Toba Bara director Pandu P. Sjahrir said.

He further said the company would likely allocate more capex next year compared to the past three to four years. In 2017, Toba Bara has allocated $65 million in capex.

Toba Bara, through its subsidiary PT Gorontalo Listrik Perdana, will build the Sulbagut-1 coal-fired power plant with a capacity of 2x50 MW to supply electricity for state power company PLN in the northern part of Sulawesi.

Toba Bara is also expected to reach a financial closing for its Sulut-3 power plant in North Sulawesi. The plant will be built by its subsidiary PT Minahasa Cahaya Lestari with a capacity of 2x50 MW.

The company’s revenue dropped to $127.86 million in the first quarter of the year from $139 million in the same period last year due to unfavorable weather conditions that affected its coal business.

“Our revenue target [by year-end] will be similar to our projection of $350 million to $400 million,” said Pandu.

Toba Bara’s net profit climbed to $8.03 million in the first half of the year from $2.62 million in the same period last year.

Toba Sejahtra as a parent company has subsidiaries in energy, mining, plantations and industrial plantations, property and industry.

Popular

Lessons from Aceh peace process may still be relevant in today’s conflicts

To rescue or abandon Java?

Govt imports over 1,500 dairy cows to boost milk production