Petrindo Jaya Kreasi, a holding company listed in Jakarta that oversees the mining ventures of Indonesian tycoon Prajogo Pangestu, announced the acquisition of the unlisted coal miner Multi Tambang Utama for $203 million. This acquisition is poised to enhance Petrindo's thermal coal production, particularly in Central Kalimantan, located on the island of Borneo, where the majority of its concessions are situated.
Multi Tambang Utama produces both thermal and bituminous metallurgical coal, operating across three concession areas covering nearly 25,000 hectares in Central Kalimantan. Petrindo announced that it had acquired a 100% stake in Multi Tambang Utama, equivalent to 2.2 million shares, from Indika Indonesia Resources and Indika Capital Investments. These entities are subsidiaries of the publicly listed company Indika Energy, which is controlled by Agus Lasmono Sudwikatmono and Wiwoho Basuki Tjokronegoro.
Additionally, Petrindo will obtain marketing rights from Indika Capital Investments, with an estimated value of $15 million, thereby increasing the overall acquisition cost to $218 million. "The completion of this acquisition marks a significant step for us in ensuring the company's growth. It aligns with our long-term strategy focusing on enhancing operational performance, supply chain integration, and expanding our business portfolio", Michael, President Director of Petrindo said in the statement.
Petrindo has been significantly increasing its investments in the mining sector. Just earlier this month, Petrindo, operating through its subsidiary Kreasi Jasa Persada, completed the acquisition of Petrosea, a publicly listed company specializing in mining engineering services, for 940 billion rupiah ($59.8 million). Prajogo Pangestu, aged 79, holds the second position in Indonesia's 50 Richest list, published last December, with a net worth of $43.7 billion. Initially establishing himself in the timber industry, Pangestu later became a prominent figure in the petrochemical sector, notably overseeing Indonesia's largest producer, Chandra Asri. In recent years, he has diversified his interests into mining and green energy.
Pangestu's fortune received a significant lift from his majority ownership of the geothermal energy firm Barito Renewables Energy. Following its listing on the Indonesia Stock Exchange in October at 780 rupiah per share, the company's stock price experienced a remarkable surge. As of Thursday morning, the share was trading at 6,175 rupiah.