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Adaro focuses on business expansion in Indonesia

25 September 2018 05:58 AM  Company: PT. Adaro Energy Tbk[ADRO]
Rp. 1,295  -10 (-0.77%)

JAKARTA - PT Adaro Energy Tbk (ADRO) is focusing on two business expansions apart from the company's main business, namely producing and selling thermal coal. Therefore, the company postponed a planned collaboration with Adani, India's largest trader company which is also coal supplIer.

The two expansions are the largest field of coking coal (coke) coal in the country as well as business development in the field of electricity generation as a diversification business.

"We are still focused on optimizing and supporting the new kestrel mine management we bought in Australia. In addition, the main priority is to focus on existing mines in Indonesia, namely thermal coal with a production target of 50-60 million tons this year," Boy added. .

According to Boy, coking coal in the domestic and global markets is still lacking in supply, whereas the demand potential is very large compared to thermal coal.

In addition, in the next few years the company will target significant revenue from the power generation business. Adaro currently has a 2x100 MW capacity generating plant in Tabalong Regency, South Kalimantan, and a 2x1000 MW Steam Power Plant.

Some of the business expansion list is PLN's solar power project (PLTS) through PT Adaro Power (AP) with a capacity of 100 megawatts (MW) in Sumatra is still in the execution stage.

Previously, Adani tried to get ADRO to work together to mine in India. Adani explores this collaboration because of the condition of their coal industry in India which still needs to be imported in large quantities. In addition, the Indian government began to open opportunities for private or foreign investors in this sector.

"There hasn't been any follow-up yet, we have met and continue to be invited to invest in India, but we don't think so. In Indonesia, there are still many opportunities so we still focus on Indonesia first," Boy said recently. (AM/LM)

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PT. Adaro Energy Tbk [ADRO]   Rp. 1,295   -10 (-0.77%)