Prajogo Pangestu’s mining interests has made home among the richest tycoons in Indonesia.
Courtesy of Barito PacificPetrindo Jaya Kreasi, a Jakarta-listed holding company for the mining interests of Indonesian billionaire Prajogo Pangestu, said it has acquired unlisted coal miner Multi Tambang Utama for $203 million. The deal will boost the thermal coal output of Petrindo, which has a majority of its concessions in Central Kalimantan on the island of Borneo.
Multi Tambang Utama produces thermal and bituminous metallurgical coal and has three concession areas spanning almost 25,000 hectares in Central Kalimantan. In a statement on Wednesday, Petrindo said it obtained 2.2 million shares or a 100% stake in Multi Tambang Utama from Indika Indonesia Resources and Indika Capital Investments, two units of listed Indika Energy, which Agus Lasmono Sudwikatmono and Wiwoho Basuki Tjokronegoro control.
Petrindo will also acquire marketing rights from Indika Capital Investments valued at $15 million, raising the total 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 doubling down on its mining investments. Earlier this month, Petrindo through its unit Kreasi Jasa Persada acquired Petrosea, a listed mining engineering services company, for 940 billion rupiah ($59.8 million).
The 79-year-old Pangestu ranked second in Indonesia’s 50 Richest list released last December with a net worth of $43.7 billion. He started in the timber business and went on to become a petrochemical magnate, controlling Indonesia’s largest producer Chandra Asri. In recent years, he has expanded to mining and green energy.
Pangestu’s wealth got a boost from a majority stake in geothermal energy company Barito Renewables Energy, whose share-price initially soared after listing on the Indonesia Stock Exchange in October at 780 rupiah. On Thursday morning, the share was trading at 6,175 rupiah.
