Research Article
A Case Study of the Business Expansion in Indonesian Coal and Energy Industry by Samtan
1 Seoul National University
Published: January 2018 · Vol. 22, No. 3 · pp. 123-142
DOI: https://doi.org/http://dx.doi.org/10.17287/kbr.2018.22.3.123
Full Text
Abstract
Samtan Co., Ltd. is a company focused on the production of bituminous coal in Indonesia. As a domestic private enterprise, it has achieved the largest production and sales volume of bituminous coal. However, as the domestic briquette industry declines due to the coal market rationalization policy, Samtan will turn their attention to overseas markets and decide to continue their business by entering Indonesia. After a consortium of Indonesian mine coal miners in 1982, the joint investors of the consortium left a decade of investment alone during their withdrawal from the project, and Samtan would succeed in developing mines in the Pasir region of Indonesia. KIDECO Jaya Agung, a local subsidiary, grew to an annual sales value of US $ 1,650 million. However, in accordance with the Coal Contract of Word (CCoW) contract with the Indonesian government in 2003, 51% of its total stake was sold to its local partner in Indonesia. Shape to a joint venture. In line with the spirit of the Indonesian government's ongoing resource nationalism, as the profitability deteriorates with mine development alone, Samtan will proceed with vertical integration of resource development related processes and manage all production processes through its subsidiaries. Since the mid-2000s, Samtan has steadily invested in new business opportunities as the political and social environment in Indonesia has changed. As a result, we are successfully expanding our business into new areas such as palm plantation (THEP), LPG gas production (PSG) and coal thermal power generation (CEP).
