Samindo Resources Targets Diversification Into Power Plant and Palm Business

PT Samindo Resources Tbk (MYOH) this year will still diversify its business. The business diversification agenda has been planned since long ago to be able to work on electricity and palm oil segment.

President Director Samindo Kim Jung Gyun said the diversification agenda as one of the company's efforts this year. Even to diversify into the power generation business, the company has prepared the land acquisition fund and its construction.

"The power plant business this year will start, but there is still discussion because it is not that simple," he said in Jakarta, Monday (26/2).

The company is currently targeting the mine mouth power plant project. Therefore, the company is preparing US $ 100 million for the acquisition of 20% -30% of coal mine shares. As for power plants, the company allocates US $ 25 million.

However, the company so far has not been able to realize the plan, because in the last year a number of electricity projects that followed, the tender has failed. This year, the company expects that there will be a tender for the power plant. "For how many megawatts it does not matter," Kim continued.

As for diversification into the palm sector, Kim has not elaborated on the plan. What is clear, according to him, the capability to manage the palm business already owned. Therefore, the business diversification plan is not a difficult thing.

"Samtan already has power plant and palm oil business, so it's not new," he continued.

Just so you know, Samtan Co. Ltd. currently owns 63% of Samindo shares. Samindo's parent company currently has a business of palm oil and power plant. Therefore, Samindo's capability to work on these two new segments will not be too difficult.