Large companies enter the clean water business

October 29, 2018, 09.40 AM | Source: Harian KONTAN
Large companies enter the clean water business

ILUSTRASI. Instalasi pengolahan air bersih


SALIM GROUP - JAKARTA. A number of large companies continue to enter the clean water business. Recently the Salim Group together with the Medco Group took over 60% of the shares of Hyflux Ltd, a Singapore company that conducts energy and clean water business.

SM Investments Pte Ltd, Salim Group and Medco consortium disburse S $ 560 million to control Hyflux. Among the total funds, S $ 400 million was used to acquire 60% of Hyflux shares, S $ 130 million as a loan to Hyflux and S $ 30 million will be used as Hyflux's working capital.

Last year Hyflux earned revenues of S $ 353.63 million, down 57.43% compared to 2016. With the acquisition of Hyflux, the Salim Group and Medco want to develop and optimize the clean water business, waste management and Hyflux power plants. Besides Singapore, Hyflux has projects in a number of Asia Pacific and Middle East countries. Most of Hyflux's revenue comes from its business in Singapore.

The Salim Group has long experience in the clean water business. They have controlled the clean water business in Indonesia through Moya Holdings. Moya now manages the water business through five entities: Moya Tangerang, Moya Bekasi, Aetra Air Jakarta, Aetra Air Tangerang and Acuatico Air Indonesia.

The Salim Group now also binds private public partnerships for clean water management in West Semarang. "After winning, Moya Holdings as the parent formed PT Air West Semarang," Director of PT Aetra Air Jakarta, Mohamad Selim, told KONTAN yesterday.

West Semarang Water will start operating in 2021. Through the build-operate-transfer (BOT) cooperation scheme, investment in this business is Rp. 458 billion within two years of development and 25 years of operational period. Water production capacity in West Semarang is 1,000 liters per second set for 70,000 families.

Another large company that plays water is PT Nusantara Infrastructure Tbk (META). META's General Manager of Corporate Affairs, Deden Rochmawaty, said that currently the META clean water production capacity is 1,275 liters per second. Nusantara prepares Rp. 450 billion for the development of the water business.

The Adaro Group is also engaged in the clean water business. Since 2017 Air Adaro has operated three assets in the form of a Drinking Water Management Installation in three different locations, namely Gresik East Java, Banjar Baru South Kalimantan and Kotawaringin Timur Central Kalimantan. "The potential of the water business is wide open," said Adaro Water President Director, Wito Krisnahadi.

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Editor: Hasbi Maulana

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