Jakarta. Thai energy company Electric Generating Public Company Limited (EGCO Group) will make an equity investment worth $194 million in chemical and infrastructure solution giant Chandra Asri Group.

This investment will give EGCO a 30 percent stake in Chandra Asri Group’s subsidiary, Chandra Daya Investasi (CDI). Chandra Asri Group will still have the 70 percent controlling stake in CDI.

The proceeds will go to developing Chandra Asri Group and EGCO’s infrastructure businesses which encompass energy, water, and port facilities. Chandra Asri Group has partnered with EGCO Group in a move to spur the development of its infrastructure business.

“We are truly pleased to partner with EGCO as a new growth partner for a synergy that will not only improve the operational efficiency but also contribute to paving the way for a more sustainable future,” Erwin Ciputra, the president director of Chandra Asri Group, was quoted as saying in a recent press statement.

“We believe this collaboration can bring positive changes to Indonesia's infrastructure landscape. We also would like to thank our shareholders, investors, and other stakeholders for the continuous support to make this transaction a success,” Erwin said.

Thepparat Theppitak, the chief executive officer of EGCO Group, said: “The investment aligned with the company’s strategic goal of acquiring high-quality and profitable power plants. This investment will strengthen our power plant business, while also expanding our fuel and other infrastructure-related businesses in ASEAN.”

The partnership is also set to enable EGCO to integrate into Indonesia and further expand in Southeast Asia, according to Theppitak.

CDI’s core infrastructure asset portfolio encompasses Indonesia’s largest and the only integrated water company, among others. Its portfolio also includes one of the two combined cycle power plant gas turbines and a joint venture for a 200-megawatt renewable energy-powered power plant with South Korean giant Posco International.

In addition, CDI also runs rental services for intermediate tanks, and integrated dock management based in major industrial parks on Java island. CDI delivers further growth to the assets in its portfolio through increasing value through operational excellence, realizing cross-entity synergies, and integrating ESG best practices, according to the press release.