Construction company PT Acset Indonusa (ACST) has divulged a plan to diversify its business into the mining construction sector.

Based on information disclosure on the IDX website on Friday, March 15, 2024, ACST has conducted a feasibility study to expand its business scope that include mining civil building construction, greater mining and quarrying support system, and telecommunications.

ACST originally had its core business in building construction, civil building construction, and supporting installations.

ACST management said there are several reasons why the company wants to diversify its business. As for the mining civil building construction sector, ACST sees that the industry is growing rapidly, thus requiring support from the government and the private sector.

For the specialized telecommunications industry sector, ACST sees that the industry development and market needs are still continuing.

For the mining and quarrying support sector, the company can experience growth in this industry by continuing to implement innovation, sustainability, and good governance.

"However, the company must consider that expanding businesses means that it will see new competitors. To minimize the impact, Acset will start offering services to companies in the same group and those of our customers/partners," ACST management stipulates in the information disclosure.

With additional business in the mining construction sector, ACST's total assets are projected to increase by an average of 10.46 percent in 2024-2028 compared to the previous years.

The increase is projected to come from cash and cash equivalents, trade receivables, customer advances, prepayments, retention receivables, and progress under construction.

"Total assets in the 2028 period are projected at Rp 1.9 trillion with the addition of KBLI (Indonesian Standard Industrial Classification), while without KBLI it is estimated at Rp 1.7 trillion," said management.

In addition, the company's liabilities with the addition of KBLI are estimated to increase by an average of 11.81 percent over the same period. This increase came from trade payables, customer deposits, loans and obligations under capital leases.

The management said that liabilities in 2028 are projected to reach Rp 1.4 trillion, while without the addition of KBLI it is estimated at Rp 1.2 trillion.