JAKARTA (Rambu Energy) – PT Rig Tenders Indonesia Tbk, which engages in a coal as wll as oil and gas vessel-chartered business, is widening its vessel operations to Thailand and Malaysia after its room for expansion is limited in domestic market following the implementation of cabotage principle in the country.
Rig Tenders is a national registered company, however majority of its shares are owned by foreign investors.
“The company will widen its operations in overseas market, in particular Thailand and Malaysia amidst limitation of opportunity to widen its business in Indonesia following the Indonesian government to implement cabotage principle (in 2015),” the company said in a statement to the Indonesian Stock Exchange.
Scomi Marine Service Pte Ltd, a Singapore-based company, holds 80.54 percent of the company’s shares.
Rig Tenders plans to buy one vessel later this year worth US$28 million, which will be financed by bank loan. The vessel will serve its clients in Thailand or Malaysia.
“The company cannot buy more new vessels with Indonesian flag to serve domestic market due to the cabotage ruling as majority shareholder of the company is foreign entity,” it said.
At present, the company operates 74 various types of vessels.
The company is also mulling a plan to form a joint venture with local (Indonesian) firm, in which the company will hold minority shares. “However, its not easy to find the right partner as local partners see us as a competitor,” it said.
At present, the company is in talk with PT Arutmin Indonesia, a subsidiary of PT Bumi Resources Tbk, to extend its contract to transport the company’s coal for 2-3 years, which expired in June. The previous contract with the company, Rig Tenders transported 7.6 million tons of Arutmin’s coal per annum.
Rig Tenders also has an existing contract with PT Adaro Indonesia to transport 8 million tons of coal per year. (*)