The Company has established diversified business strategies and investment plans for the Company to grow in quality, stability and sustainability in the long term, which the Company has two coal mining concessions in Indonesia and in the process of investing in the 3rd coal mining concession with the remaining concession for several decades with quality coal reserves that is sufficient to use as fuel for coal-fired power plant. Indonesia currently has insufficient electricity to meet the needs of the population which continues to grow, together with the expansion of Indonesian economy every year, by which the Indonesian government had planned to increase 56.024 gigawatts to its power generation capacity within 2027 with a proportion of 54.4 percent that will use coal as fuel for electricity generation, which will be invested by State Electricity Company of Indonesia (“Perusahan Listrik Negara Electricity Company or PLN”) and provides opportunity for private sector or Independent Power Producer (“IPP”) to make a direct offer or direct appointment. The Company and its subsidiary companies certainly have potential to invest in coal-fired power plant projects, thereby, having established Lanna Power Generation Co., Ltd. (“LPG”), a subsidiary company registered in Thailand, and PT. Power Indonesia (“LPI”), a subsidiary company registered in Indonesia, to conduct feasibility studies and prepare to invest in coal-fired power plant project and renewable energy both in Thailand and overseas, having primary objective to submit tender for coalfired power plant projects in Indonesia and also aims to expand the investment in power plant business both in Thailand and other countries.
The Company has discussed and negotiated with other companies with expertise in power plant business and recently entered into Memorandum of Understanding (“MOU”) with PT. Indonesia Power, a state-owned enterprise in Indonesia, for joint-investment in coal-fired power plant project and other related businesses, having studied and prepared for a joint venture in the mine-mouth coal-fired power plant project of 55 megawatts, as well as preparing for a tender process of the mine-mouth coal-fired power plant project of 200 megawatts.
For the investment in power plant business in Thailand, a consortium is interested to participate in a tender process of coal procurement project for coal-fired power plant of the Electricity Generating Authority of Thailand (“EGAT”), which has been selected in the pre-qualification process, and also ready to consider an investment in coal-fired power plant project or other renewable energy in Thailand, such as municipal solid waste to energy project in the provincial area, etc., which is a potential investment project in the future since the government actively promotes and supports.
In addition, as the renewable energy business continues to expand, especially in solar and biomass, the Company has planned and set goal to invest in renewable energy project both domestically and overseas, such as electricity generation from solar power, including biomass and biogas, as well as wood pellet, etc. The Company is conducting a feasibility study on the investment in wood pellet production and distribution project, both the completed construction project (Brownfield Projects) and the new project not yet under construction (Greenfield Projects) since Wood Pellet is a renewable energy with good business prospects and can substitute for coal used with steam boilers in industrial plants or small and medium-sized power plants in Japan, Korea and EU countries, by which the demand of wood pellet should continue to increase in the future. The Company will focus on an investment in ASEAN countries including Thailand, Vietnam and Indonesia, as these countries have potential and sufficient wood raw materials, expecting good return from its investments in such renewable energy in correspondence with the Company’s business strategy to generate more revenue and profit in the future.