Jakarta. Heavy equipment, mining, and energy company United Tractors (UNTR), a subsidiary of conglomerate Astra International (ASII), is preparing a series of expansion strategies for 2025, with a strong focus on the mineral mining and renewable energy sectors. The company plans to allocate up to $1 billion (around Rp 16.8 trillion) for investments as it moves away from its reliance on coal.

Iwan Hadiantoro, Director of UNTR, said the company is committed to expanding its portfolio in the metals and minerals sector. “We are focusing on commodities such as nickel and gold, and we are considering bauxite if opportunities arise. We have set aside $500 million to $1 billion annually for acquisitions,” Iwan said during a public presentation in Jakarta on Friday.

Currently, UNTR is exploring potential acquisitions in the mineral sector. The company has already made moves into the field by acquiring Stargate Pacific Resources and Stargate Mineral Asia, both in nickel, as well as Supreme Energy Rantau Dedap through its subsidiary Energia Prima Nusantara, which focuses on geothermal energy.

Iwan reiterated that the company aims to balance revenue contributions from coal and non-coal sectors by 2030. Expansion funding will be sourced from internal cash reserves and bank loans.

"For acquisitions, we are flexible in terms of financing, using both internal cash and bank loans," he added.

Ari Setiawan, Head of Investor Relations at UNTR, said future acquisitions will focus on strategic commodities such as gold, nickel, and other minerals. "We are continuously seeking potential assets that align with our growth strategy," Setiawan said.

In terms of heavy equipment sales, Director Widjaja Kartika shared that demand for machinery remains high, particularly from the mining sector. However, she acknowledged that falling coal prices have prompted some contractors to implement operational efficiencies. “We are taking a ‘wait and see’ approach to the effects of commodity price fluctuations. So far, Komatsu sales remain positive,” Kartika stated.

UNTR is also facing increased competition from Chinese heavy equipment brands, which have become more aggressive in the market. “We are confident that Komatsu will remain competitive due to its focus on quality improvement and digital marketing,” said Director Lody Irwanto Elias. In 2024, Komatsu's market share held steady at 26 percent.

UNTR reported Komatsu sales of 1,345 units in Q1 2025, reflecting a 23 percent year-on-year growth. The company is targeting total sales of 4,600 units in 2025.

Impact of New Royalty Policies

Regarding the new royalty policy, CEO Frans Kesuma said the changes have had varying effects. For coal, the maximum royalty rate has been reduced from 28 percent to 13.5 percent, while for gold, the rate has increased from 10 percent to 16 percent due to rising global prices.

"We remain committed to being the lowest-cost producer. The royalty changes have already been factored into our 2025 projections," Frans said.

He assured that efficiency would continue to be the main strategy, despite the adjustments to royalty expenses. “Royalties are a requirement for resource management licenses. We will continue to manage our operational costs as efficiently as possible,” he concluded.