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Bosowa Group.

BACKGROUNDS

The company was originally known with the name of CV Moneter established in 1973 to operate in trading business. The company was founded by H. Aksa Mahmud, a local businessman from Makassar, South Sulawesi. He is a brother in law of former vice president Yusuf Kalla.

In 1978, the company secured an exclusive right as a sole dealer for Japan's Datsun cars for Eastern Indonesia. The name of the company, therefore, was changed with PT. Moneter Motor.

PT. Moneter Motor was in 1980 named by Mitsubishi Motors as a sales & distributor for its Mitsubishi cars for Eastern Indonesia. In the same year, the name of PT. Moneter Motor was changed again with PT. Bosowa Berlian Motor. This company became the embryo of Bosowa Corporation, the holding company for the Bosowa Group.

Bosowa Group grew expanding operation to the manufacturing sector by establishing a subsidiary Pt. Semen Bosowa Maros (PT. SBM) which operates a cement factory in Maros, South Sulawesi. The Bosowa Group soight to control distribution system by establishing new subsidiaries PT Bosowa Trading International, PT Bosowa Lloyd and PT Mallomo Transporindo to operate in trading, and transport business.

In 2000, the Bosowa Group established PT. Semen Batam to operate a cement factory on that island. Earlier the Bosowa Group already had two cement factories in Maros,South Sulawesi. In 2011, the Bosowa Group produced 3.2 million tons of cement and succeeded in securing a 7% share of cement market in Indonesia.

PT SBM cancelled plan to launch initial public offering (IPO) in 2009 through which it hoped to raise Rp 1 trillion as the market condition was not favorable.

In 2006, H. Aksa Mahmud, the founder, bequeathed the management of the company group to his son H. Erwin Aksa. Currently the Bosowa Group, which already has 28 member companies is seeking to strengthen and expand business in cement, infrastructure, financial service, property, power generating and agribusiness sectors. Bosowa Corporation is now the largest company in eastern Indonesia with assets estimated at US$ 550 million in 2009.

CEMENT INDUSTRY MAIN PILLAR

PT. Semen Bosowa Maros (PT. SBM) started operation in 1999 as the largest cement producers in Eastern Indonesia. In 2010 PT. SBM expanded its production capacity from 1.8 million tons/year to 2.8 million tons/year with an investment of Rp 300 billion.

Currently, PT. SBM has a 30% share of cement market in eastern Indonesia. Competition is not very sharp in that region. There are only three companies supplying cement to that region--Indocement, Tonasa and Bosowa. Nationally, PT. SBM has only a 5% share of cement market.

In 2012, PT. SBM sets aside US$600 million for investment in two years to come mainly to finance business expansion by building more factories including factories to produce clinker in South Sulawesi--PT SBM Mill II.

PT. SBM wants to make the cement factory in Maros as a production center for clinker to feed cement factories in other regions. In Maros the company has two factories but one is still in the process of construction.

PT. SBM plans to open a new clinker factory with a capacity of 3 million tons/year. Currently PT. SBM has 1 unit of clinker factory having a capacity of 2.2 million tons/year. The new factory willo bring its production capacity to 5.2 million tons/year of clinker.

Around US$300 million of the planned investment of US$ 600 million will be used to build the new clinker factory and the rest to finance construction of new cement plants in Banyuwangi, Cilegon, Sorong, and other areas in North Sulawesi and Sumatra. The Bosowa Group also plans to upgrade the capacity of its cement mill in Batam.

In 2012, PT. SBM has named Halla Energy & Environment from South Korea to build a second factory of PT. SBM in Maros, South Sulawesi. The project will cost around US$ 326 million and it is to be completed in 2014. The second unit of factory will produce clinker with an annual capacity of 3 million tons.

PT. Semen Batam started operation in 2008 with a production capacity of 1.2 million tons/year. The factory uses machine with the technology of Germany, China and Indonesia. The factory has a special port for loading and unloading. It could accommodate ships measuring up to 30,000 tons in weight. It has a 150 meter long quay. The factory also has two storage facilities with a capacity of 75,000 tons of clinker and 20,000 tons of gypsum, the basic materials for cement. It also has two bulk loading facilities and two packing tools that could pack 2,500 tons of cement per day.

Batam needs around 480,000 tons of cement per year. Currently the Bosowa Group has a 50% share of cement market in Batam.

In 2010, CTI Group, a shipping, flight charter and trading company from Jordan, acquired a 10% stake in PT. Semen Batam. The CTI Group also has a 50% stake in Bosowa Lloyd. CTI handles the transport of clinker for PT. Semen Bosowa di Batam.

In 2011, the production capacity of PT. Semen Batam rose to 1.8 million tons per year.

The Bosowa Group also plans to build a special quay for 60,000 DWT ships, 75,000-ton clinker factory, four packing plants with a packing capacity of 5,0006,000 tons of cement per day.

In 2012, the Bosowa Group will build a cement grinding plant with a capacity of 1.2 million tons/year in Banyuwangi, East Java with an investment of Rp 733.45 billion, expected to be completed in 2014. The Bosowa Banyuwangi cement plant will occupy a land plot of 18 hectares.

The cement factory in Banyuwangi will supply cement of East Java, Bali and West Nusa Tenggara. In East Java, Bosowa cement has a 20% share of the market.

Completion of the expansion projects, will increase the total capacity of the Bosowa Group to 10 million tons of cement a year. Two cement mills in Maros will have a production capacity of 4.5 million tons/year, including 2.5 million tons from the first unit and 2 million tons/year from the second unit; Sorong 500,000 tons/year, Cilegon 2 million tons/year and North Sulawesi 500,000 tons/year, and from Batam 2 million tons/year after upgrading.

SILO PACKING PLANT

After building the cement Silo Packing Plant (SPP) in Balikpapan with a capacity of 300,000 tons per year, PT Semen Bosowa Maros built again another SPP with an investment of Rp100 billion in the regency of Lombok Barat, West Nusa Tenggara (NTB).

The cement packing plant is the sixth after ones in Banyuwangi, Ciwandan (Banten), Samarinda (East Kalimantan), Kendari (Southeast Sulawesi) and Balikpapan (East Kalimantan). Bosowa plans to build two more packing plants with an investmernt of up to Rp 650 billion.

PT Bosowa Terminal Indonesia is a joint venture between PT Sarana Teluk Sumber and PT Waskita Karya to build four units of silo packing plants in Balikpapan (East Kalimantan), Pontianak (West Kalimantan), Mataram (West Nusa Tenggarat), and Dumai (Riau) early this year. Currently packing plants of Bosowa Banyuwangi could supply only 35,000 metric tons of cement per month including for Bali.

In early 2012, the Silo Packing Plant in Balikpapan, East Kalimantan started operation. The Bosowa Group through PT. Sarana Teluk Sumber cooperated with BRM Group and Meranti Group to build the Rp 100 billion project.

The packing plant will supply up to 300,000 tons of Bosowa cement per year to Balikpapan and other areas in East Kalimantan. Balikpapan needs around 400 tons of cement a year. Balikpapan depends much on cement supply from Samarinda. The production of the two cement factories of Bosowa will reach 3.7 million tons in 2012, to be expanded to 5.7 million tons in 2013.

TERMINAL LPG

The Bosowa Group will build am LPG (liquefied petroleum gas) terminal near the grinding mill in Banyuwangi. Construction of the terminal will cost around Rp 700 billion and it will serve as a distribution center for LPG through cooperation with state oil and gas company PT Pertamina.

LPG for the LPG terminal will be supplied by Pertamina. The terminal will distribute LPG for East Java. East Java needs around 935 metric tons of gas per day. Supplies so far averages only 410 metric tons of gas per day, that there are 232 more companies needs gas supply in that province.

PT. Bosowa Duta Energasindo (PT. BDE) will build an LPG terminal having a capacity of 10,000 tons in Makassar, South Sulawesi. The project will cost around US$70 million or Rp624.7 billion. The project will be built over a 14.6 hectare plot of land to be completed in 2014.

PT. BDE has named PT Wijaya Karya Tbk (Persero) to build the offshore terminal. PT Murza Utama Sulselra is to build its offshore pipeline 5.3 km long and PT Budi Bakti Prima to build GT offshore.

LOGISTICS AND DISTRIBUTION

The Bosowa Group also has subsidiaries operating in the shipping, land transport and Ready Mix sectors

The Bosowa Group is the largest distributor of ready mix in eastern Indonesia, using the Full Mix system to produce all types of concrete needed by small and large concrete projects.

AUTOMOTIVE SECTOR

PT. Bosowa Berlian Motor is a sales agent and distributor for Mitsubishi Motors and Mitsubishi Trucks and Buses for eastern Indonesia.

The Bosowa Group also has other subsidiaries operating as agents for other brands including Pt Gowa Dinasti Motor (for Hyundai cars), PT Timur Permai (Mercedes cars) and PT Proton Edar Sadira (Proton cars).

The Bosowa Group also has business unit operating in taxi and car rental business. It had a fleet of around 500 units of taxi in 2009.

PT Bosowa Utama operates taxies in Makassar, Gowa, Takalar, Maros and Pangkep and nearby areas with a market share of 55%.

PT Oto Rental Nusantara operates 250 units of various types of car for rental. PT Merpati Wahana Taksi Bosowa (PT. MWTB), the operator of Bosowa Taxi has a fleet of 420 units in 2012. The company plans to increase the number by 130 units. Most of the taxi cabs of Bosowa Taxi are Proton Waja and Persona cars. Bosowa Taxi plans to strengthen its fleet with Toyota New Limo.

By 2015, the company plans to add 1,000 more units of cars to strengthen its taxi fleet with an investment of Rp 12 billion. PT. MWTB has a 10% share of the market in Surabaya, Sidoarjo, Gresik and nearby areas.

INFRASTRUCTURE

PT. Nusantara Infrastructure Tbk operates a number of toll roads in South Sulawesi and Jakarta. The 13.1 kilometer Jakarta--Serpong: toll road via BSD and Bintaro is connected with the Jakarta outer ring road from Ulujami. The toll road has two lanes each 3.5 meters wide.

PT Nusantara Infrastructure Tbk through subsidiary PT. Potum Mundi Infranusantara (PT. PMI) will build two drinking water projects included in the Public Private Partnership scheme in South Sulawesi and Lampung.

Earlier, PT. PMI and Metito and Glendale passed the qualification selection in the tender for a drinking water project in Maros, South Sulawesi, under the PPP scheme. The project is worth US$ 13 million with the Build Operate Transfer (BOT) system for 30 years. The company will increase intake to 270 liters per second with a pumping system, using 8.5 kilometer pipeline with a diameter of 500 millimeters. It will have a capacity to produce 250 liters of drinking water per second, with storage pool of 4,500 cubic meters and distribution pipelines of 37 kilometers. The project will supply drinking water to Maros and Hasanuddin airport.

PT PMI in cooperation with the drinking water supply company (PDAM) Way Rilau, Lampung will build drinking water supply system in Bandar Lampung. The company will optimize SPAM Sumur Putri which has a capacity of 450 liters per second with an investment of S$ 108 million.

PT. Bosowa Marga Nusantara operates the 6.1-kilometer section I and II of Makassar toll road between Jl. Kalimantan (Soekarno-Hatta port) and Jl. Teuku Umar-Jl.Sultan Abdullah Raya and the 3.10 km Tallo bridge with section II between Jl.Teuku Umar--Jl.Sultan Abdullah Raya and the cross road of Jl. Jend.Urip Sumohardjo and the 3.10 km Jl.AP.Pettarani.

PT. Jalan Tol Seksi Empat built the 11.57 km section IV to connect the port and the Makassar Industrial Estate and the Hasanuddin airport.

PT. Jakarta Lingkar Barat is the operator of section W1 of Jakarta Outer Ring Road (JORR W1). The 9.7 km. JORR W1 is part of Jakarta Outer Ring Road connecting Kebon Jeruk - Soekarno-Hatta toll road. This toll road is busy with traffic of 100,000 to 180,000 per day.

Previously construction of the toll road of Kebon Jeruk, West Jakarta Penjaringan, North Jakarta was delayed on financial problem. The Bosowa Group through PT Margautama Nusantara provided capital injection to PT Jalan Lingkar Barat (JLB) 1 as the concession holder for JORR W1, and the other shareholder include PT Bangun Tjipta Sarana, PT Rekadaya Adicipta, PT Margautama Nusantara and PT Jasa Marga Tbk. In addition to capital injection by Bosowa, Jasa Marga also contributed Rp 180.6 billion.

POWER PLANT

PT. Bosowa Energy (PT. BE) in cooperation with the SSP Group has build a coal-fired power plant with a capacity of 2 x 125 MW to cost US$ 200 million in Jeneponto, South Sulawesi. The power plant was built over 50 hectares of land in a 230 hectare plot of land of the Jeneponto Industrial Estates.

PT. BE secured a US$50 million credit from Bank Rakyat Indonesia (BRI) to build the project. Construction was carried out by Chengda Engineering Corporation from China completed in 2011.

According to plan, PT. BE will build a second unit of the power plant with an investment of US$300 million.

PT. BE has also built a diesel oil--fired power plant with a capacity of 13.4 MW in Maros, South Sulawesi. The power plant was built over a 3 hectare area using a 3.5 MW generator and a 2.9 MW generator from Sulzer/Wartsila of Switzerland.

MINING

PT Bosowa Mining produces limestone (a cement basic material), marble blocks and marble tiles and has heavy equipments rental business.

PT Bosowa Resources produces trash (Chipping), split stone, silica stone and coal.

The Bosowa Group sets aside US$1 billion for capital expenditure for 2012. The fund will be used to build a nickel smelter in Jeneponto and to build a number of steam powered electric plants (PLTU).

PT Bosowa Metal Industri (PT. BMI) plans to build a nickel smelter with a capacity of 10,000 tons/year with an investment of US$330 million. Nickel ore will be supplied by three mining concessions held by the Bosowa Group operated by PT. Bosowa Mining having a nickel ore reserves of 100 million tons to last for 30 years. The processed nickel metal will be exported to China, Korea, Japan and Europe.

The smelter will be built over a 50 hectare plot of land in Jeneponto, which will be developed into an integrated industrial estate in South Sulawesi. The smelter is planned to comply with the government regulation requiring processing of mineral ores in the country as in 2014, export of mineral ores will be banned.

PROPERTY

The Bosowa Group started business in the property sector in 1980 and it has dominated the property market in Makassar with products including Bosowa Tower, hospitals and hotels.

PT. Indah Bumi Bosowa (PT. IBB) has built housing complex and commercial centers including 2-hectare Griya Athira Permai (70 units of house), 1-hectare Belmon Residence (41 units), 5-hectare Dataran Residence (200 units), Bosowa Tower (Strata Title Office Tower in Makassar) with 23 floors built with an investment of US$ 15 million.

PT.IBB cooperated with Perumnas in 2009 to build Rusunami (low cost apartment) in Makassar. The Rusunami was built over a 20-hectare plot of land in Tamalanrea, Makassar.

PT Tuju Wali Wali built Imperial Aryaduta Hotel Makassar, a five star hotel in Makassar and Bosowa Sport Center in Baddoka, Jubilee School in Makasar, Hotel Grand Shaila in Makassar and RS Awal Bross, a special heart treatment hospital in Makasar.

The 23-floor Bosowa Tower was commissioned in 2010. Part of the space are sold on strata title system to other users. The tower was built at a cost of Rp 140 billion.

AGRIBUSINESS

PT. Bantimurung Indah has a sea weed processing plant with a capacity of 250 tons--500 tons per month. Starting in 1980, the company has exported its product to Europe including the Netherlands, Germany, France and Britain. Exports to China and Japan are in the form of chips (dried sea weed) too be used as cosmetic basic material.

In 2010, the company produced 1,000 tons of seaweed flour and chips, up from 400 tons in the previous year. The increase in production was boosted by growing demand with supplies from Jeneponto, Bulukumba, Maros, Pangkep and Nunukan of East Kalimantan, and Kupang of East Nusa Tenggara.

PT Bosowa Isuma operates shrimp and milkfish ponds in Makassar, South Sulawesi for local markets.

In 2011, the Bosowa Group in cooperation with the East Kalimantan regional administration planned to builod a rice and food estate. In the first phase, the regional administration is to provide 15,000 hectares of land in Nunukan, East Kalimantan.

The Bosowa Group will build 10,000 hectares of rice estate and 5,000 hectares of food estate as parts of 234,273 hectares of lands to be developed in cooperation with state companies and other private companies in 10 regencies in East Kalimantan.

FINANCIAL SERVICE

PT Asuransi Periskop established in 1969 operates in general insurance business. This company offers insurance protection for motor vehicles, property and contractors. In 1999 Bosowa Corporation took over the company and it was renamed PT Asuransi Bosowa Periskop (PT ABP). Currently the company has 125 offices all over Indonesia.

PT. Bosowa Multi Finance (BMF) operates in car and motorcycle leasing business. It has branches in various areas in eastern Indonesia.

The Bosowa Group plans to acquire Bank Pembangunan Rakyat, to strengthen PT Royal Trust Capital and buy Euro Capital Peregrine Securities listed on the Indonesia Stock Exchanges.

The Bosowa Group teams up with Qatar National Banks in expanding publicly traded lender PT Bank Kesawan Tbk.

FINANCIAL PERFORMANCE

In 2011, PT. Nusantara Infrastructure Tbk, which operates in infrastructure sector reported an income of Rp 232 billion or an increase of 23.6% from the previous year's Rp 187 billion income. The increase was attributable to growing number of toll roads operated by the company.

However, the company still suffered a loss in the past two years. In 2010, it reported net loss of Rp 37.7 billion, and in 2011, the net loss was Rp 27.2 billion.

Altogether the Bosowa Group recorded a total income of Rp 4.5 trillion in 2009. The largest contribution was from cement business.

In 2011, PT Bank Negara Indonesia Tbk signed an agreement to restructure a Rp584 billion credit of the Bosowa Group rolling over the repayment until 2015.

Members of the Bosowa Group :

1. Bosowa Corporation, PT (Investment Holding)

2. Semen Bosowa Maros, PT (Cement Industry)

3. Semen Batam, PT (Cement Industry)

4. Bosowa Energy, PT (Electricity)

5. Bosowa Berlian Motor, PT (Automotive Trading)

6. Bosowa Trading International, PT (Logistic)

7. Bosowa Lloyd, PT (Shipping)

8. Mallomo Transporindo, PT (Transportation)

9. Bosowa Terminal Indonesia, PT (Silo Packing Plant)

10. Sarana Teluk Sumber, PT

11. Bosowa Duta Energasindo, PT (LPG Train)

12. Bosowa Mining, PT (Mining)

13. Bosowa Reasources, PT (Mining)

14. Bosowa Metal Industri, PT (Nickel smelter)

15. Indah Bumi Bosowa, PT (Real estate Developer)

16. Tuju Wali Wali, PT (Hotelry)

17. Bantimurung Indah, PT (Agribusiness)

18. Bosowa Isuma, PT (Shrimp Hatchery)

19. Asuransi Bosowa Periskop, PT (General Insurance)

20. Bosowa Multi Finance, PT (Leasing)

21. Royal Trust Capital, PT (Financial Service)

22. Euro Capital Peregrine Securities, PT (Securities)

23. Nusantara Infrastructure Tbk, PT (Toll Road Operator)

24. Bosowa Marga Nusantara, PT (Toll Road Operator)

25. Jalan Tol Seksi Empat, PT (Toll Road Operator)

26. Jakarta Lingkar Barat, PT (Toll Road Operator)

27. Margautama Nusantara, PT (Investment holding)

28. Potum Mundi Infranusantara, PT (Drinking Water)
Table-29
Summary of financial report of PT. Nusantara Infrastructure Tbk,
2010 and 2011

(in million)

Description 2011 2010
 (31st Dec) (31st Dec)
ASSETS
a. Current Assets 350,360 556,815
b. Non Current Assets 289,074 261,909
c. Fixed Assets 1,194,180 1,090,132
c. Other Assets 1,536 182

Total Assets 1,835,150 1,909,038

LIABILITIES
a. Current Liabilities 111,240 37,126
b. Non Current Liability 719,910 853,351
c. Other Liability -- --
c. Equity 1,004,000 1,018,561

Total Liabilities + Equity 1,835,150 1,909,038

REVENUES
a. Revenue 232,000 187,618
b. Net Loss (27,231) (37,748)

Source: PT. Nusantara Infrastructure Tbk

BOSOWA GROUP

Parent company Bosowa Group

Address Bank Exim Building 6th Floor
 Jl. Tanjung Karang Kav 3-4A

City Jakarta 10232

Phone(s) (021)3148345

Fax. (021)3148340

Website www.bosowa.co.id

Number of companies 28 Companies

Lines of business --Investment Holding
 --Cement industry
 --Property
 --Infrastructure
 --Automotive trading
 --Mining
 --Electricity
 --Financial Service
 --Agribusiness

Source: PT. Bosowa Coporation
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Title Annotation:COMPANY PROFILE
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Date:Apr 1, 2012
Words:3557
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