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Pangestu Bolsters BREN's Market Position with Rp251.69 Billion

Updated: Jun 21


  • Prajogo Pangestu, Barito Pacific founder, makes a major BREN share purchase.

  • BREN subsidiary finalizes wind farm acquisition and geothermal expansion, boosting renewable energy portfolio.



By Zilmiati Aisha Anjani, Daffa Maulana Harianda, and Nisrina Anindya Febriani

June 12, 2024 at 16:30 GMT+7


BREN’s sharp fluctuations in the market have brought attention not only to the investing community but also to Prajogo Pangestu, Barito Pacific group founder. The plunging market prices then awakened Prajogo Pangestu’s acquisition involving 37,848,800 shares valued at Rp251.69 billion which has brought a significant public eye back towards BREN. 


Pangestu’s act was greatly reliant on the foundation of credence he has as the Chairman of Barito Pacific Group, as he entrusts a great number of additional share ownerships as mentioned. Prajogo Pangestu’s initiative and confidence in the development he has in the Barito Pacific Group and its subsidiaries, Star Energy Geothermal and Barito Wind Energy, has rejuvenated the market’s confidence in putting trust in BREN.



Prajogo Pangestu | Source: IDX Channel


Barito Wind Energy, one of BREN subsidiaries, has finalized a major acquisition that expands the company's portfolio of green energy projects with the Sidrap 1 Wind Power Plant. With a total of 75 MW clean energy capacity addition, BREN is not only increasing its renewable energy output but also demonstrating its commitment to diversifying its energy sources. 


Besides that, a 116 MW expansion is being carried out by Star Energy Geothermal, a BREN subsidiary, to increase the production of geothermal energy. Given Indonesia’s large geothermal potential, the energy is an essential component of the country’s renewable energy mix. The capacity will greatly increase the total amount of renewable energy produced by BREN. 



These developments align with BREN’s strategy of organic capacity enhancement as the approaches create a strong portfolio of renewable energy sources while lowering reliance on pricey outside purchases, the expansion of BREN's capacity is part of BREN's growth story to increase capacity through organic growth



Star Energy Geothermal Salak | Source: Barito Pacific


Barito Group's diversified business model, which spans energy, petrochemicals, logistics, and property, effectively reduces investment risks by spreading its interests across various sectors. This approach not only stabilizes the company's revenue streams but also mitigates potential losses in any single market.


Significant foreign investments in TPIA and BREN stocks underscore the strong international interest in Barito Group's ventures, reflecting global confidence in its business strategies and market position. Furthermore, Prajogo Pangestu's recent purchase of BREN shares has significantly boosted investor confidence, even amidst the uncertainties of market fluctuations and stringent FCA regulations. 



This strategic move by Pangestu demonstrates his faith in the company's future prospects and underscores Barito Group's resilience and commitment to sustaining growth and stability in a complex economic landscape.



 

Sources:

Bloomberg

CNBC

IDX Channel


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1 Comment


Iman Satyo Adi
Iman Satyo Adi
Jun 14

Good to see that BREN is expanding 😺 great strategy by Prajogo Pangestu 😸

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