JAKARTA – PT Alamtri Resourcs Indonesia Tbk (ADRO) announced that its subsidiary, PT Alam Tri Bangun Indonesia, will take over PT Kalimantan Industrial Park Indonesia (KIPI) through a debt-to-equity conversion scheme.

The management of Alam Tri Bangun Indonesia mentioned that this acquisition stems from a loan extended by ADRO to PT Kawasan Industri Kalimantan Asri, the owner of KIPI, with the shares of KIPI pledged as collateral.

“As of the end of 2024, the utilised debt facility reached IDR 2.39 trillion,” it stated in an official release on Monday, 11 March.

KIPI is a national strategic project developed as a green industrial zone. This area covers industries such as electric vehicle batteries, petrochemicals, and aluminium, spanning approximately 13,000 hectares. Within this zone, PT Adaro Minerals Indonesia Tbk (ADMR), a subsidiary of ADRO, is constructing a smelter targeted for completion by the end of 2025.

This acquisition is considered a strategic move by ADRO to strengthen its business ecosystem, similar to PT AKR Corporindo Tbk’s (AKRA) business model in JIIPE.

In addition to generating initial revenue from industrial land sales, ADRO also has the potential to secure recurring income from electricity supply and industrial estate services.

The electricity supply to KIPI will come from PT Kayan Hydropower Nusantara, in which ADRO holds a 50% stake. This hydroelectric power plant has a capacity of 1.37 gigawatts and is expected to be operational by 2030. In the short term, however, the industrial zone will continue to rely on existing coal-fired power plants.

As of now, there has been no official information regarding ADRO’s ownership stake in KIPI after the debt conversion process is completed. (DK/KR/ZH)