PT United Tractors Tbk ( UNTR ) officially added share ownership in PT Arkora Hydro Tbk ( ARKO )

08-08-2022 | By : Arkora Hydro

KONTAN.CO.ID - JAKARTA. PT United Tractors Tbk ( UNTR ), a subsidiary of PT Astra International Tbk ( ASII ), through PT Energia Prima Nusantara or EPN officially added share ownership in PT Arkora Hydro Tbk ( ARKO), the operator of the Mini Hydro Power Plant (PLTM).

Meanwhile, EPN is a subsidiary of United Tractor which is engaged in the business in the environmentally friendly energy sector or New and Renewable Energy (EBT).

ARKO's President Director, Aldo Henry Artoko said that information had been received from ACEI shareholders, the signing of a sale and purchase agreement (CSPA) between EPN and ACEI Singapore (the seller) to increase EPN's ownership through the purchase of ARKO shares owned by ACEI Singapore amounting to 21 ,61%.

“The transaction for the addition of share ownership in ARKO is carried out by the Astra Group through its subsidiary, namely UNTR. The total value of the purchase transaction reached Rp 176.5 billion, so that the total ownership of the Astra Group through UNTR in ARKO increased to 31.49%," he said in a press release, in Jakarta, Monday (8/8).

According to Aldo, the transaction for the addition of share ownership is very important for the Company. That's because the Astra Group and ARKO have the same vision and mission in developing new and renewable energy for Indonesia.

With the inclusion of the Astra Group into ARKO, ARKO believes that it can further accelerate the development of new energy, especially to obtain large-scale projects with a capacity of more than 25 MW per project in order to realize the company's vision, namely to increase the renewable energy mix in Indonesia through the development of potential energy potential. water in the country. 

"This hope is certainly supported by ARKO's strong technical, financial and fundamental capabilities," said Aldo.

This transaction brings many benefits to ARKO. ARKO can enter a mature company ecosystem with a good corporate culture and can grow even faster. 

"We can utilize resources from the Astra Group / United Tractor for the company's development needs in the future," he said.

In addition, this transaction is also a validation for ARKO as a developing company that has solid fundamentals, good GCG and strong business prospects. This is evidenced by the fact that top-ranking companies such as Astra Group through UT (United Tractor) can decide to become ARKO shareholders.

Not only that, according to Aldo, with this partnership , ARKO has better access to financing for larger projects and better GCG implementation for ARKO.

Aldo added that ARKO prepared a capital expenditure of Rp 200 billion - Rp 250 billion in 2022 for hydroelectric power plants.

"We also plan to spend capital for other renewable energy projects, namely Arkora Solar Power of around Rp 20 billion in 2022," explained Aldo.

Aldo said that ARKO currently operates 17.4 MW of environmentally friendly power plants and is building 15.4 MW of hydroelectric power plants. ARKO also already has projects in the future that are ready to be developed to be built with a total capacity of up to 50 MW.

The company is also eyeing hydroelectric power plant projects with a capacity above 25 MW per project to be developed in the next 3-4 years.

"With the alignment with the Indonesian government and the global world regarding renewable energy , the ability of a competent and dedicated team or human resource coupled with partners such as United Tractor or Astra Group, we are very optimistic about ARKO's prospects in the future," said Aldo.