Home » Business » Mari Puan owned by RAJA is preparing for expansion, budget IDR 4 T!

Mari Puan owned by RAJA is preparing for expansion, budget IDR 4 T!

Jakarta, CNBC Indonesia – PT Rukun Raharja Tbk (RAJA) may not be as popular as PT Perusahaan Gas Negara Tbk (PGAS), which are both engaged in the gas industry. nonetheless, recently KING re-appeared in the surface.

KING seems to be gearing up for expansion. Not just one or two, but a series of expansions that in total require an investment of up to 269.3 million US dollars or the equivalent of about 4 trillion Rp.

The plan was revealed in the disclosure of information submitted by the company to the Indonesia Stock Exchange (IDX), cited Friday (5/8/2022). In the letter, it was revealed that RAJA is currently running a tender for the procurement of the Tanjung Batu-Samarinda gas pipeline.

The project with an estimated value of 101 million US dollars is still in the finalization stage of the agreement. If nothing goes wrong, this project will start in June 2026 and will be completed three years later.

RAJA plans to become the majority shareholder of the project. Thus, project performance results will be consolidated into the company’s financial performance.

If RAJA wins the tender, the company is estimated to reap an additional 4.6% of revenue from the project. The net profit contribution is 13.4% and this will be recorded in the 2026 books.

RAJA also sees a potential acquisition of PT Krakatau Tirta Industri. The estimated time to complete the acquisition agreement is targeted at December this year.

It is estimated that US $ 135 million is necessary for the acquisition. If it goes on time, the acquired entity will contribute 44.1% of RAJA’s net profit and will be registered in April 2023.

The King will use internal cash as a source of financing for the expansion. In addition to internal cash, the company will combine it through bank loans.

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