United Tractors Placed Investment in PT Arkora Hydro Tbk

8 August 2022 – Jakarta

JAKARTA: PT United Tractor Tbk (“The Company”), through its subsidiary, PT Energia Prima Nusantara (“EPN”) signed a Conditional Shares Sale and Purchase Agreement/”CSPA” with ACEI Singapore Holding private Ltd. (“ACEI”) on Thursday, 4 August 2022.

The strategic move from United Tractors in diversifying its business by buying 632,801,893 shares at the amount of  IDR176,551,728,147 or equal to 21.61% shares owned by ACEI of PT Arkora Hydro Tbk (“Arkora”) is a realization of the Company’s commitment to implement the ESG principles in its business expansion as well as to strengthen United Tractor’s position in sustainable business.

Upon the acquisition of ACEI shares, 21.61% of Arkora shares will be transferred to EPN. Added with the shares acquired during Arkora’s initial public offering, EPN will directly and indirectly own 922,173,893 or equal to 31.49% of Arkora shares.

United Tractor’s investment in Arkora is aligned with the Company’s business development strategy, whereby it has determined New and Renewable Energy (NRE) business as one of its transition strategies in energy sector to achieve sustainable business. The investment is one of the form of business expansions that puts forward the creation of added values to fulfil the needs of all stakeholders. United Tractors expects that this investment will accelerate NRE business development in the Company’s portfolio.

Arkora is a public company focusing on power plant using New and Renewable Energy (NRE). Today, Arkora operates two Mini Hydro Power Plants (or Pembangkit Listrik Tenaga Minihidro/ PLTM), i.e., PLTM Cikopo 2 located in West Java with the capacity of 7.4 MW, and PLTM Tomasa located in South Sulawesi with the capacity of 10 MW. On top of those, Arkora has two PLTM projects under construction stage, that are expected to operate in 2023 and 2024. When the operation starts, Arkora will own power plants with the total capacity of 32.8 MW.

On the other hand, EPN is currently building PLTM Besai Kemu with the capacity of 7 MW located in Lampung, Sumatera, which is expected to operate in 2023. EPN is also targeting several PLTM projects in Sumatera, with the total potential capacity of more than 20 MW. In Solar PV sector, EPN has installed 6.9 MWp Rooftop Solar PV. It is expected that during 2022, EPN will add 15 MWp Rooftop Solar PV installations and will increase in the coming years.

United Tractors always puts forward business diversification as part of its sustainable practices and ESG implementation, to build together a better future for the nation, as well as to support the government in achieving the carbon emission reduction target.

About EPN

PT Energia Prima Nusantara (“EPN”) is founded in 2014. At the beginning, the company was focused on power plant, transmission, distribution and sales of conventional energy. In 2018, EPN diversified its business to renewable energy. Today, EPN focuses on the enhancement of competencies in hydro power plant, rooftop solar PV and other renewable energy resources such as floating solar PV, battery storage, waste to energy and wind turbine.

About ARKORA

PT Arkora Hydro Tbk (“Arkora”) is a limited company founded in 2012, focusing in electrical power plant sector. The main business of the company is in new and renewable energy power plant, in particular hydro-based. Arkora shares are listed in IDX in 2022, with the code: ARKO.

About United Tractors’ ESG Implementation

As a world-class heavy equipment, mining and energy company with 50 years of experience in Indonesia, United Tractors is committed to bring a sustainable future for Indonesia through effective ESG and sustainability principles that create a positive impact to society and the environment while conducting good corporate governance on all business levels, and optimizing the competence, skills and strategic assets to create value for all stakeholders and the larger Indonesian society.

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