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LISTED COMPANY - JAKARTA. PT Mitrabara Adiperdana Tbk (MBAP) is persistently expanding its subsidiary businesses amidst weakening commodity prices.
This strategy is pursued considering coal is a commodity with limited reserves. In addition, MBAP aims to seize opportunities from the growing trend of new and renewable energy demand, as well as other businesses.
Mitrabara Adiperdana's CEO, Khoirudin, stated that in line with Mitrabara's four business pillar roadmap, MBAP will continue to maintain its main business pillar in the mining sector, particularly coal.
However, Khoirudin added, MBAP is also continuously exploring other mining potentials such as minerals, andesite, and other types of mines.
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"In addition, we are also very serious about developing new businesses through its subsidiaries, namely in the new renewable energy sector, the agro-industry sector, and the infrastructure and services sector," Khoirudin said in Jakarta, Thursday (2/5).
Khoirudin explained that in the new renewable energy sector, MBAP entered the solar and biomass power generation business. PT Masdar Mitra Solar Radiance (MMSR), a Mitrabara subsidiary in the solar energy field, has operated a solar panel with a capacity of 1.75 MWp in 2023 and will continue to increase every year.
In the next 5 years, MMSR aims to operate 200 MWp with a contract finalization target of 195 MWp.
Meanwhile, PT Malinau Hijau Lestari (MHL), which is engaged in wood pellet production, is expected to become one of the market leaders in wood pellet producers with a production capacity of 150,000 tons per year, targeted to start production by the end of 2025.
In the agro-industry sector, MBAP entered the aquaculture business through PT Mitradelta Bahari Pratama (MBP), in collaboration with PT Delta Marine Indonesia, which has more than 40 years of experience in the vannamei shrimp farming industry.
Starting this year, MBP operates 20 vannamei shrimp ponds in So Lembo, West Nusa Tenggara, with a production target of ± 190 tons. Continuously, MBP will increase the number and target to optimally operate 140 cultivation ponds with a production target of ± 3,000 tons per year.
MBAP believes that the aquaculture business has a fairly large opportunity and is still very open, including for business development in the upstream and downstream sectors, such as cold storage to processing.
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In the infrastructure and services sector, MBAP entered the mining contractor business through PT Mitra Muda Makmur (MMM). MMM is targeted to become a leading mining contractor capable of providing competitive services in the mining industry in the homeland.
By the end of 2023, the coal business pillar still dominates MBAP's revenue. However, in the coming years, Khorudin is optimistic that the diversification being carried out will contribute significantly to the company's performance.
"We hope that the contribution from this business diversification can support the company's performance when coal prices fall as has happened throughout 2023 until now," said Khoirudin.
As an illustration, MBAP recorded a net profit in 2023 of US$ 21.69 million or IDR 351.3 billion (assuming an exchange rate of IDR 16,199), down compared to 2022 which reached US$ 179.39 million.
In addition to net income, in 2023 MBAP's consolidated revenue was known to be US$ 224.09 million, this value also decreased compared to last year which was at US$ 449.54 million.
