ABM Secured US$ 428 Million Contract through Subsidiary
CK Expands Construction Services Business
Jakarta, June 12, 2013 – PT ABM Investama Tbk, (IDX: ABMM) today announced that the
company, through subsidiary PT Cipta Kridatama (CK), signed a five-year contract worth US$
428 million with PT Kaltim Jaya Bara (KJB). The scope of work consists of overburden
removal, heavy equipment rental and construction of infrastructure to the mining site. The
contract was signed by CK’s President Director Yovie Priadi and KJB’s President Director
Djohansyah R in Jakarta.
“The contract with KJB is a significant achievement for CK, not only for the contract value, but
also taking into account the potential synergy and long-term development prospects. CK has
been involved in the process prior to the commencement of the mining activities (the green field
project), such as in the construction of the 30-kilometer hauling road leading to the mining
location,” said Yovie.
This project is in line with CK’s business plan in 2013 to expand its business, beyond its current
capacity as a mining services provider, and venture further into construction services. “We hope
that our business expansion by developing the hauling road construction infrastructure at KJB
would give additional value to our client,” Yovie explained.
KJB has medium-calorie 5,600 GAR coal (sub- bituminuous) with more than 10 years potential
life of mine. KJB has signed a long-term contract with an off-taker to ensure the continuity of
production and sales of KJB products.
“With Cipta Kridatama’s experience, supported by a professional team and our focus on the
business, we are confident that we will be able to proceed with this project without fail,” Yovie
added. The total overburden removal targeted by the end of the project in 2018 is at 151.5
“Our collaboration with CK is an essential pillar of KJB’s mining operational development
strategy. We chose CK considering its strong reputation in the country’s mining service industry,
its proven competence as well as the company’s high commitment to ensure the success of our
project. We are very glad and appreciate CK’s management professionalism during the
negotiation process and to design KJB’s mining operational development plan. We believe that
the professional values will remain strong during the synergy process and our future success with
CK,” said Bungai Ongo, KJB Director.
The President Director of ABM Investama Andi Djajanegara stated, “The new contract with KJB
reflects that CK has earned trust from industry players. The contract signing is a positive step
towards future business developments. ABM is confident that the business line diversification
that CK is currently undertaking, could strengthen its performance, as well assist ABM in taking
major strides in the energy industry.”