• ADRO expands beyond metallurgical coal
Alamtri Resources Indonesia (ADRO) is expanding beyond metallurgical coal by investing in
minerals and renewable energy. Through its subsidiary, Adaro Minerals Indonesia (ADMR),
the company is developing a large-scale aluminum smelter under the Kalimantan
Aluminium Industry (KAI). The smelter, set to begin commercial operations in 4Q24, will
initially produce 100,000 tons of aluminum, ramping up to a full capacity of 500,000 tons by 2027. ADMR has secured the alumina supply and is targeting exports for the majority of its
production. Looking ahead, the company aims to expand the smelter’s capacity to 1.5M tons
annually, contingent on renewable energy availability from the Mentarang Induk
Hydropower Plant (PLTA). To support its renewable energy transition, ADRO is investing in
the IDR 50T (USD 2.7B) Mentarang Induk PLTA, developed by Kayan Hydropower Nusantara
(KHN). The 1,375 MW hydropower plant, expected to start operations in 2030, will supply
green energy to Indonesia’s Green Industrial Park, including ADMR’s aluminum smelter. The
project is currently less than 25% complete, with construction ramping up in mid-2024.
Meanwhile, ADRO is also expanding solar power capacity, with ongoing solar PV projects for
Adaro Group operations. While open to acquisitions, ADRO remains focused on executing its
large-scale projects in mining downstream and renewable energy. (Kontan)
• NISP to distribute IDR 106 dividend per share
Bank OCBC NISP (NISP) has decided to distribute a dividend of IDR 106 per share, totaling
IDR 2.43T during its Annual General Meeting of Shareholders (RUPST) on 20 Mar. This
dividend represents a 49.98% payout ratio from the company’s net profit of IDR 4.86T. In
addition to dividends, IDR 100M is allocated for general reserves, while the remaining profit
is retained earnings. Based on the previous closing stock price of IDR 1,280 per share, the
estimated dividend yield is 8.2%. OCBC NISP recorded an 18.9% yoy increase in net profit,
driven by a 14.3% yoy rise in interest income to IDR 18.78T, which offset the 18.7% increase in
interest expenses. As a result, the bank’s net interest income (NII) grew by 11.4% yoy to IDR
11.04T. The bank’s total assets expanded by 12.5% yoy to IDR 281T, supported by the
acquisition of Bank Commonwealth and a 10.8% growth in loans to IDR 169.7T. Customer
deposits (DPK) rose by 13.3% yoy to IDR 205.93T, with time deposits increasing by 14.4% and
low-cost funds (CASA) growing 12.4%, though the CASA ratio declined by 50 bps to 55.3%.
(Kontan)
• TPIA to complete Chlor-Alkali plant project
Chandra Asri Pacific (TPIA) is advancing its world-scale Chlor Alkali – Ethylene Dichloride (CAEDC)
plant project in Cilegon, Banten, with an investment of IDR 15T. Managed by its
subsidiary, Chandra Asri Alkali (CAA), the plant is expected to be completed by 2027 and has
been designated a National Strategic Project (PSN) to support sustainable economic growth.
The construction phase will create 3,000 jobs, with 250 permanent positions once
operational. The plant will produce 400,000 tons of solid caustic soda (or 827,000 tons in
liquid form) and 500,000 tons of Ethylene Dichloride (EDC) annually, reducing Indonesia’s
Chlor Alkali import dependency by IDR 4.9T per year and boosting export revenue by IDR 5T.
Caustic soda is essential for water treatment, soap production, nickel refining, and pulp and
paper processing. Meanwhile, EDC is a core ingredient in Polyvinyl Chloride (PVC), which is
vital for the construction industry. To support this project, the company has allocated a
capital expenditure of USD 350–400M (IDR 5.5–6.3T) in 2025, reinforcing its long-term organic
growth strategy and strengthening Indonesia’s chemical supply chain. (Kontan)
