DNEX PLANS INDONESIA POWER FORAY
Company targets mini-hydro, geothermal and solar energy projects
AMIR HISYAM RASID KUALA LUMPUR bt@mediaprima.com.my
DAGANG Nexchange Bhd (DNeX), which has a market capitalisation of more than RM1 billion, will join Tenaga Nasional Bhd (TNB), YTL Corp Bhd and Eversendai Corp Bhd in entering Indonesia’s power sector.
Group managing director Zainal Abidin Jalil said it was planning a progressive entry through tender processes and acquisitions that would be concluded by year-end.
He said its expansion into the power business in Indonesia would be mini-scale mini-hydro, geothermal and solar energy projects that could supply below 30 megawatts.
Zainal declined to disclose any details as negotiations were ongoing.
“We are a small company with big aspirations. The idea is to start somewhere and this is our progressive entry into the power sector.
“We chose Indonesia because of its stronger demand for power and more competitive tariff compared with other countries,” he said after DNeX’s annual general meeting, here, yesterday.
Zainal said the bulk of its capital expenditure (capex) starting this year would be earmarked for its power business.
DNeX had allocated around RM50 million as capex this year, he said.
NST Business reported that the Indonesian government was making it easier for companies to do business in the country.
This has encouraged Malaysian utility and non-utility firms to expand their power business there.
Indonesia, which aims to attract 20 trillion rupiah (RM6.6 billion) worth of investments from Malaysia, is in the midst of allowing the import and export of power supply with other countries.
TNB, it is learnt, will resume its US$1.6 billion (RM7.08 billion) project in Riau, Sumatra, while a potential coal power plant project in North Kalimantan could be the power giant’s second investment in the country.
DNeX has been on the lookout for mergers and acquisitions to grow its business and revenue.
Zainal said it was eyeing double-digit growth in revenue and profit this year, driven mainly by its information technology and e-services business as well as from the growing power business.