TAMBANG, July 23, 2012 | 04.52
THE EVER BLOSSOMING TOBA SEJAHTRA

by: Heriyono
heriyono@tambang.co.id

Retired General Luhut Binsar Panjaitan was born in Toba Samosir, North Sumatera, on 28 September 1947. His previous career with the Indonesian military was quite illustrious. He is known as a very active person who cannot only sit idly and expect pension money.
In 2004, he established PT. Toba Sejahtra (hereinafter referred to as TOBA), with his son, David Togar Panjaitan, focusing on coal, oil and gas, electricity and agriculture. He owns 99.98% of the company shares while the remaining 0.02% is owned by his son, David. In 2010, Mr. Panjaitan established PT. Toba Bara Sejahtra, a subsidiary company of PT Toba Sejahtra, the majority shares of which is owned by PT. Toba Sejahtra (82.42%). The remaining are owned by PT. Bara Makmur Abadi (6.98%), Roby Budi Prakoso (4.07%), PT Sinergi Sukses Utama (5.70%) and David Togar Pandjaitan (0.83%). He does not stop by having only one subsidiary company. TOBA also marks its success by establishing another five companies, namely PT. Energi Mineral Langgeng, PT. Fairfield Indonesia, PT. Pusaka Jaya Palu Power, PT. Kartanegara Energi Perkasa, and PT. Trisensa Agro Sejahtra.
As part of its forward looking plans, TOBA will be registered at the Indonesian Stock Exchange (BEI in its Indonesian abbreviation) this year. The company will release 15% of its share to the public as an effort to gain capital resource amounting to IDR 588 to 763 billions. For this purpose, TOBA has appointed PT. Mandiri Sekuritas, PT. Morgan Stanley Asia Indonesia, and PT. CLSA Indonesia. In the company’s book building, it is said that the company plans to release its shares within the range of IDR 1.850 to 2.400 per stock, with a total volume of 319 million stocks.
It is expected that 15% of the gain from the IPO will be used to settle the company’s obligation payable to BNP Paribas. Another 50% will be used to fund the company’s mining activities, and the remaining 35% is planned to be used for acquisition of mining concessions or for working capital and exploration purposes. The company’s management was confident that it could obtain the certification from the country’s Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) on 25 June, thus the IPO could take place by 27-29 June, and formally registered on 5 July 2012 at theBEI.
TOBA also owns three subsidiary companies, namely PT. Adimitra Baratama Nusantara, PT Toba Bumi Energi and PT Trisenda Mineral. The company owns 51% of shares at PT Adimitra Baratama, 99.99% of shares at PT Toba Bumi Energi and 99.92% at PT Trisenda Mineral. As a mother company of PT. Indomining, PT. Toba Bumi Energy owns a total of 99.99% of its shares.
Known as among low-cost thermal coal producers in Indonesia, TOBA has grown into a reputable coal producer in the country with three major mining sites in East Kalimantan. PT. Adimitra is the biggest contributor with 70% of the company’s main income. Its mining site is located in Sanga-Sanga, Kutai Kartanegara, East Kalimantan, operating on open-pit of 2.990 acres since 2008.
The quality of PT. Adimitra’s coal is of 5,000 to 6,000 Kcal. The company’s mineable reserves and resources have been certified in accordance with the Joint Ore Reserves Committee (JORC) standards. The infrastructures constructed next to the company’s mining site are a 5 km road, a 4.7 km corridor with a capacity of 1,700 metric ton (mt) per hour and a crusher with a capacity of 1,000 mt per hour. The company has also built a landfill of up to 280 thousand tons capacity, and a port stockpile which can facilitate up to 100 thousand tons of materials. The construction was performed by three contractors, namely PT. Petrosea, PT Bangun Karya Pratama Lestari and PT Arkananta.
Another TOBA subsidiary company, PT. Indomining, operates in Sanga-Sanga and has been fully operationalized since 2007 on an open-pit of 683 acre. A 4 km road was constructed to support the Company’s operation, along with 4.3 km conveyor with a capacity of 1,000 mt per hour, and a crusher with a capacity of 500mt per hour. PT. Sapta Indra Sejati was entrusted to construct the infrastructures.
PT Trisensa Mineral Utama as a subsidiary company also operates in Sanga-Sanga on an open pit of 3.414 acre of land. Just like the other companies, PT. Trisensa Mineral Utama will construct a road to support its operation. PT. Surya Teknik Anugerah will be the main contractor for the 20 km road nearby the mining site.
On oil and gas, TOBA has been involved through PT. Energi Mineral Langgeng and PT. Fairfield Indonesia. PT. Energi Mineral Langgeng operates on 4,567.34 sq2 km of concession block, South East of Madura with a ratio of successful exploration of around 40%. Its total resource potential risk is estimated at about 2 billion barrels of oil, 593 billion cubic feet of gas and 36 MMbc of condensate.
PT. Fairfield Indonesia, established in 2005, is a joint venture with Fairfield Nodal, a reputable US sesmic company. The company utilizes state-of-the-art technology to handle seismic data in 2D and 3D technologies.
TOBA has also expanded into power plant business. Operating under the flags of PT. Pusaka Jaya Palu Power and PT. Kertanegara Energi Perkasa, TOBA has engaged in the construction of some power plants. At the moment, PT. Pusaka Jaya Palu Power operates coal-based power plant in Palu, Central Sulawesi. The company started its operation in 2007 and is able to produce 2x15 megawatt (MW) of electricity, with expansion plan of up to 40MW in 2013. To support the local community, the local government there also owns a minority share in the power plant.
Further, PT. Kartanegara Energi Perkasa is currently in negotiating process on electricity trading with PT. PLN (the state electricity company) in the development of a gas-based power plant in Kutai Kartanegara, East Kalimantan. The plant will produce 2x40MW of electricity (in single cycle), and is expected tobe in full operation in December 2012.
TOBA is also involved in the agrobusiness through PT Tritunggal Sentra Buana. It owns a small share in a palm plantation located atMuara Saliki, East Kalimantan. Its operation permit includes 12,000 acres of plantation area, with the production of 92 mt of fresh palm, 16 mt of crude palm oil and 4 tm of palm kernel oil.