Source: The Jakarta Post
Publicly listed state-owned construction firm PT PP is set to acquire steel producer PT Krakatau Steel’s drinking water supply subsidiary in an effort to become the biggest drinking water supply company in the country.
PT PP president director Lukman Hidayat said on Tuesday that the company was in talks with the state-owned steel maker to acquire shares of its subsidiary, drinking water provider PT Krakatau Tirta Industri (KTI) that operates in Cilegon, Banten.
“We’re still in talks with Krakatau Steel, but we haven’t agreed on how many [shares] we’ll be buying [from them],” he told the press in Jakarta.
Finance director Agus Purbianto added that the publicly listed firm was seeking majority ownership in KTI so that it could bring added value to the company.
He continued to say that PT PP’s interest in acquiring KTI stemmed from the fact that the drinking water supply provider already had its own captive market, as well as the fact that it managed to book profits for its parent company.
“Clean water is also an essential part of everyone’s life and we think that this is the business of the future,” said Agus.
The company’s plan to acquire KTI is also in line with its longer term plan to venture into the drinking water supply business.
PT PP currently owns five water supply concessions in the country, the most recent one being the Ir H Djuanda drinking water supply system (SPAM) that supplies water to 2.8 million people in the Karawang, Bekasi and Bogor Regencies and Bekasi city in West Java.