INDONESIA Trends and Developments Contributed by: Alvin Suryohadiprojo, KARNA
to 1.8 million metric tons in 2023. This abundant supply has attracted substantial investments in nickel processing and battery production, align - ing with the growing global demand for electric vehicles and, accordingly, resulting in a rise in transactions within this sector. This is also in line with the mineral downstreaming policy that has been in place in Indonesia for the last five years (see below). One of the notable recent M&A transactions in this industry is the acquisi - tion of the entire shares of PT Infei Metal Industri by PT Harum Energy Tbk (IDX: HRUM). PT Infei Metal Industri owns and has been operating a nickel smelter located in Indonesia Weda Bay Industrial Park, North Maluku Province, with an annual production capacity of 28,000 metric tons of nickel since April 2022. Through its two subsidiaries, HRUM paid USD70.38 million to the previous owner of PT Infei Metal Industri. Aside from the industries mentioned above, the growth of carbon trading in Indonesia has nota - bly influenced M&A within the forestry sector. Leveraging its natural wealth of expansive for - ests, Indonesia is positioning itself as a leading supplier of carbon credits. As a result, the forest - ry industry has become a focal point for carbon offset projects, attracting increased investment and consolidation activities. Additionally, with the issuance of a regulatory framework through Presidential Regulation No. 98 of 2021 regarding the implementation of carbon economic value to achieve nationally determined contribution tar - gets and control over greenhouse gas emissions in relation to national development, and the Min - ister of Environment and Forestry Regulation No. 7 of 2023 regarding the procedures for carbon trading in the forestry sector, there has been a surge in acquisitions of companies holding for - est concession rights in Indonesia. However, it is interesting to observe business players’ inter - est in carbon trading especially after President
Donald Trump decided to withdraw the United States from the Paris Agreement. The following are some M&A activities con - ducted by public companies in Indonesia dur - ing 2024: • the acquisition of PT UPC Sidrap Bayu Energi, the company operating a wind power plant in Sidrap, South Sulawesi, by PT Barito Renewables Energy Tbk (IDX: BREN); • the acquisition of PT Borneo Bangun Banua and PT Borneo Bangun Banua Bestari, both coal mining companies, by PT Petrindo Jaya Kreasi Tbk (IDX: CUAN); • the acquisition of majority ownership of Brawijaya Hospital, one of the largest women and children hospital groups in Indonesia, by PT Saratoga Investama Sedaya (IDX: SRTG); • the acquisition of 8% participating interest in Jabung Oil and Gas Working Area by PT Rukun Raharja Tbk (IDX: RAJA); • the acquisition and consolidation of PT Bank Commonwealth, a banking and financial ser - vices company, by PT Bank OCBC NISP Tbk. (IDX: NISP); • the acquisition of PT Net Visi Media Tbk. (IDX: NETV), the television broadcasting company, by PT MD Entertainment Tbk (IDX: FILM); • the acquisition of 90% participating interest in Siak Oil and Gas Working Area and 90% participating interest in Kampar Oil and Gas Working Area by PT Energi Mega Persada Tbk (IDX: ENRG); • the acquisition of PT Sarana Citranusa Kabil and PT Citra Pembina Pengangkutan Indus - tries, both seaport services companies, by PT Cipta Krida Bahari, a subsidiary of PT ABM Investama Tbk (IDX: ABMM); and • the acquisition of PT Ultra Mandiri Telekomu - nikasi, a telecommunications company, by PT Dayamitra Telekomunikasi Tbk (IDX: MTEL).
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