Com­pany tar­gets mini-hy­dro, geo­ther­mal and so­lar en­ergy projects

New Straits Times - - Business -

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.

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