Forty years ago, Prajogo Pangestu founded Barito Pacific Timber in Indonesia. Strong leadership and astute business decisions lead to the company’s expansion into other sectors.
In 2003 Star Energy Group was established and has since become one of the largest and most successful diversified energy companies in the country.
Originally an integrated timber processing and export company, Barito Pacific Timber shipped products to Japan, the United States, Europe and China. The company ventured into the pulp and paper business in 1989 through its 200,000-hectare plantation and eight years later,Barito Pacific Timber was processing 500,000 tons of pulp per year.
The move into the energy sector began in 1991 when Pangestu built the largest petrochemical plant in Southeast Asia. With current investments in petrochemical valued at USD 8.5 billion the ‘Cracker II’ plant is currently being expanded in order to meet domestic demand with total investment predicted to reach USD15 billion by 2022.
Foresight is key to the success of every business. With the company’s profitable venture into the energy industry, ‘Timber’ was dropped from the company name and Barito Pacific entered the renewable and sustainable energy sector in 2003 through Star Energy Group. Today the company focuses on oil, gas and geothermal energy through its state-of-the-art power plants.
Lead by President and Chief Executive Officer Rudy Suparman, Star Energy Group has developed into one of the world’s largest geothermal power producers with a combined production capacity of 875 megawatts throughout three facilities operating in Indonesia: Wayang Windu, Darajat and Salak.
With environmental responsibility a priority for Star Energy Group, the company exceeds all international safety and environmental standards and regulations.
‘When establishing and running our geothermal plants and other facilities, we work extremely hard on community capacity building within the local communities who live and work in the area’, says Suparman, ‘Our decisions are based on our desire to be responsible corporate citizens. Each of our facilities has received a ‘Gold’ or ‘Green’ ranking; the highest ecological standards certification awarded by the Government of Indonesia. Today, we are recognized internationally and domestically as the ‘Partner of Choice’ in the Indonesian energy sector’.
In addition to Star Energy Group’s commitment to environmental sustainability, the company is also actively involved in education, medical assistance and social development programs. In addition to providing text books, equipment, computers and libraries to local communities, the company has provided scholarships to over 1,600 students.
‘We are driven to continue contributing to the betterment of the country’, says Suparman. ‘Our priorities are to contribute to the Indonesian economy and improve people’s lives. Profitability is important to us as a company and giving back to society is a key pillar of our business model’.
These value shavea positive effect on the company’s balance sheet. Star Energy Group’s revenues more than doubled from 2015 to 2016 and this growth trend looks set to continue as the company moves forward.
‘Compared with other ASEAN member nations, Indonesia is in a unique position’,says Suparman. ‘With a population of over 250 million and GDP growing at five per cent per year, demand is thriving within the Indonesian economy. The market has been good to us; especially in our petrochemical division and we expect this to continue’.
Star Energy Group’s close ties with Singapore provide the company with key strategic advantages. Another division of Star Energy Group operates off-shore oil and gas fields in West Natuna Sea – such produced gas has been transported to Sembawang Corporation by underwater pipeline and has helped in providing power to parts of Singapore for more than 15 years.
The close relationship between Indonesia and Singapore also ensures both countries benefit from strong shared financial services and bilateral investment initiatives.
Singapore’s reputation as a leader in banking and financial services guarantees many of the region’s deals are done in Singapore under strict fiscal controls which offer transparency to companies in Indonesia and across ASEAN.
‘Singapore’s financial services industry is highly advanced and as a company, and a country, we enjoy doing business together to our mutual benefit’, concludes Suparman. ‘Our long-standing relationship with Singapore is based on shared trust and we appreciate Singapore’s role as a stepping-stone to the world while we strengthen our strategic partnership and close friendship’.