Samindo Resources (MYOH) Ready to Enter the Renewable Energy Business

KONTAN.CO.ID - JAKARTA. Coal mining service company PT Samindo Resources Tbk continues its plan to diversify its business into the power generation sector. Samindo Resources Investor Relations, Ahmad Zaki said the company plans to expand to the electricity business since 2017.

The MYOH coded stock is eyeing several power plant projects, including the new and renewable energy power plants. MYOH is currently participating in two tenders for solar power plants (PLTS). "We are participating in two tenders for solar power plants in Bali," he said when met by in Jakarta, Wednesday (21/8).

In Kontan's notes, PT Perusahaan Listrik Negara has begun the re-auction process of the West Bali PLTS and East Bali PLTS from March 11, 2019. These two projects each have a capacity of 25 MegaWatt (MW) and are planned to be operational in 2021.

Zaki further said MYOH was not yet interested in working on other new renewable energy power plants such as geothermal or hydroelectric power plants. "If the geothermal and water are difficult to access," he added.

In addition, they are still eyeing the steam power plant project. Previously MYOH participated in several tenders for steam power plants, unfortunately it did not reach the tender.

Regarding funding, Zaki claimed the company had prepared an internal source of funds. He mentioned that to expand to the MYOH electricity business, funds need more than US $ 1 million for 1 MW.

Even so the company claimed revenue from the coal mining business line would still contribute the largest portion to MYOH's total revenue. He said MYOH was serious in developing business in the power generation sector.