This year, PT Rukun Raharja Tbk (RAJA) is preparing a capital expenditure or capital expenditure (capex) of up to US$100 million for the completion of development and acquisition plans.

President Director of Rukun Raharja Djauhar Maulidi said that the company plans to use the capital expenditure to purchase a company engaged in providing clean water, namely PT Bravo Delta Persada. The company claims to have a water capacity of up to 100 liters per second (LPS). This action is entering the finalization stage.

"We are taking this step because the application of water pipes in the field can be carried out simultaneously with the installation of gas pipes next to each other," he said in Jakarta, Friday (19/3).

As for the gas sector, the company is trying to complete the acquisition of PT Heksa Energy Mitraniaga, which adds to the LPG Discharge infrastructure development located in Rembang, Central Java, with a capacity of up to 2000 tons per day. The company targets the construction to complete in the third quarter of this year.

"Also, we plan to participate in gas trading projects and pipeline projects in Central Java and work on pipeline gas trading projects in Jambi," said Djauhar.

Furthermore, Rukun Raharja also intends to develop CNG gas in several regions in Indonesia, especially Java and Sumatra, with a potential volume of 1-3 million standard cubic feet per day (MMSCFD).

The company assesses that gas demand previously reduced due to the pandemic can recover in 2021 in line with economic growth in the Asia Pacific region, especially China.

Meanwhile, for the European, Eurasian, and North American markets, demand growth was gradually triggered by industrial and power sectors.

From a customer perspective, the company has obtained new customers from the industrial sector for gas distribution. The contract will start in 2021. Rukun Raharja also received 10 MMSCFD of gas allocation from PSC in Sumatra.