PT United Tractors Tbk (UNTR) is ramping up its focus on renewable energy, branching out from its core heavy equipment business and exploring opportunities in solar energy development.
Edhie Sarwono, Director of United Tractors, confirmed the company’s commitment to renewable energy through substantial investments in geothermal projects.
He indicated that the company is prepared to invest trillions of rupiah in the renewable energy sector, highlighting their cautious and strategic approach.
“We are still collaborating with Supreme Group on various activities, and we are doing so with careful consideration. We take this very seriously,” Edhie told a press conference in Jakarta on Monday, October 7, 2024.
In addition to geothermal potential, United Tractors is eyeing solar energy as another avenue for growth. However, Edhie clarified that the transition to renewable energy will not immediately replace the company’s existing businesses, noting that this shift will depend on government policies regarding renewable energy’s role in Indonesia’s energy mix.
Edhie emphasized the importance of aligning with government regulations and market conditions.
“While the transition will take time, we are fully committed to this initiative,” he added.
Renewable energy ventures
United Tractors, part of Astra Group, has been aggressively exploring new business opportunities, particularly in renewable energy. The company recently completed the acquisition of PT Supreme Energy, a leading player in geothermal energy.
This move marks a significant step in United Tractors’ diversification into the geothermal power generation industry, alongside major industry players such as PT Pertamina Geothermal Energy, PT Barito Renewables Energy, and PT Medco Energi Internasional.
United Tractors’s Corporate Secretary, Sara K. Loebis, said the company, through its subsidiary PT Energia Prima Nusantara (EPN), has finalized a share acquisition agreement with PT Supreme Energy and PT Supreme Energy Sriwijaya (SES).
EPN acquired 984,127 new shares in SES, representing a 49.6 percent stake, for a total transaction value of US$51.87 million (Rp805.48 billion).
“The transaction was completed on December 27, 2023, after all conditions of the agreement were met,” Sara confirmed in the disclosure to the Indonesia Stock Exchange (BEI) on Friday, January 5, 2024. With these investments, United Tractors is positioning itself as a serious player in Indonesia’s growing renewable energy sector, aiming to balance its legacy business with new sustainable ventures.
