SBY meets with Thai cement tycoon over $1b investment plan

12 March, 2012 | Source: The Jakarta Post

President Susilo Bambang Yudhoyono met with leaders of Thailand’s Siam Cement Group (SCG) at the Presidential Office on Tuesday.

The President was accompanied by some Cabinet members, including Industry Minister MS Hidayat, State Secretary Sudi Silalahi and Cabinet Secretary Dipo Alam, while among the Thai business representatives were SCG President and CEO Kan Trakulhoon and SCG Chemical President Cholanat Yanaranop.


Representatives of Chandra Asri Petrochemical, Siam’s business partner in Indonesia, as well as Thailand’s ambassador to Indonesia, Thanatip Upatising, also attended the meeting.


The giant Thai cement producer intended to seek government support of its expansion plan, which includes the construction of a US$300 million plant in Sukabumi, West Java, Hidayat said.


“The investment of this group has reached almost $1 billion. Together with Chandra Asri, they plan to invest another $1 billion in petrochemicals,” Hidayat said.


With total assets of about $970 million, Indonesia is SCG’s biggest foreign investment destination, Kan Trakulhoon said.
“We also have also been investing in Vietnam, the Philippines and Cambodia,” he said.


SCG began its business in Indonesia in 1996 and has continued expanding due to the Thai firm’s confidence in Indonesia’s solid economic growth, Kan said.


In November 2011, SCG acquired a 30 percent stake in publicly-listed Chandra Asri Petrochemical, Indonesia’s largest integrated petrochemical firm.


Also in 2011, SCG acquired two other listed companies in Indonesia, namely PT Keramika Indonesia Assosiasi and PT Kokoh Inti Arebama.


In January, SCG spent $135 million to acquire 100 percent shares of Australia-based cement producer PT Boral Indonesia.
SCG is a business group controlled by Thailand’s royal family.
 

 

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