Jakarta. Dian Swastatika Sentosa, the Sinar Mas Group’s energy and infrastructure arm known to most investors as a thermal coal play, is assembling what one local brokerage calls the only vertically integrated artificial intelligence infrastructure chain in Indonesia – spanning power generation, fiber networks, data centers, and the country’s largest digital payments dataset.

Pluang’s Research Team (Pluang Maju Sekuritas) initiated coverage on the company, listed on the Indonesia Stock Exchange under the ticker DSSA, with a buy recommendation and a target price of Rp 1,145 per share this week, implying a 40.5% upside from closing price (30/06/2026) of Rp 815.

“Coal built its foundation; AI will transform DSSA’s entire growth engine,” Pluang’s research team wrote in the report published on Wednesday (01/07/2026).

Coal Cash Funding a Green Pivot
Coal remains the company’s undisputed cash engine. Golden Energy Mines, or GEMS, in which DSSA holds a 51% stake, contributed roughly 86.4% of group revenue in the 2025 fiscal year and ranks as Indonesia’s fourth-largest coal producer by reserves, with 840 million tons. GEMS produced 54.9 million tons last year, with around half of its exports destined for China.

Pluang expects the coal unit to generate $1.3 billion in net profit from 2026 onward, assuming Newcastle benchmark prices of $130 to $155 per ton amid continued disruption in global energy markets linked to tensions around the Strait of Hormuz.

Rather than returning that windfall to shareholders, DSSA is redeploying it into assets the brokerage argues command far richer valuations. The company is developing up to 480 megawatts of geothermal capacity across six working areas – including Cipanas and Cisolok-Cisukarame in West Java and Nage in East Nusa Tenggara – targeting commercial operation from 2029, alongside a solar cell and module plant in Kendal, Central Java, built with China’s Trina Solar and state utility PLN that can scale to 2 gigawatts of annual capacity.

“Every $1 of coal operating cash flow reinvested into geothermal or hyperscale data centers is worth approximately 2.0 to 2.5 times more in enterprise value,” Pluang said.

Four Layers, One Stack
The heart of the thesis is what Pluang describes as a four-layer AI infrastructure stack that no other Indonesian company can replicate in full:

1. Energy. Power typically accounts for 40% to 60% of a data center’s operating costs, and next-generation AI server racks draw up to 20 times the power of conventional ones. Geothermal, unlike solar or wind, delivers stable, carbon-free baseload electricity – a combination Pluang calls “a category-of-one offering in Southeast Asia,” noting that global cloud giants pay 15 to 20% rental premiums for carbon-free co-location and have pledged to run entirely on carbon-free energy by 2030.

2. Connectivity. MoraRepublic, formed through the April merger of Moratelindo and MyRepublic, holds 12.7 million home passes and 2.6 million subscribers, making it Indonesia’s second-largest fiber broadband network after Telkom’s IndiHome. At the group level sits XLSmart, the country’s third-largest mobile operator with some 73 million subscribers following the XL Axiata-Smartfren merger, which operates what Pluang says is Indonesia’s only nationwide 5G standalone network capable of the sub-10-millisecond latency that real-time AI applications require.

3. Compute. SMX01, a 50:50 joint venture with South Korea’s LG CNS, is set to become Jakarta’s first Tier IV, AI-ready data center when it opens in the fourth quarter of 2026 with 18 megawatts of capacity, expandable to 60 megawatts. The facility in the capital’s central business district can house up to 2,400 high-density GPU racks with liquid cooling, backed by an investment exceeding $300 million. It complements 25 existing edge data centers across 24 cities operated under the SM+ brand.

4. Applications and data. DSSA holds a roughly 20% stake in DANA, Indonesia’s largest digital wallet with more than 200 million registered users, covering an estimated 78% of the adult population. Pluang argues that DANA’s payments, location, and credit data constitute “the only complete Indonesian AI training corpus,” an asset it says took six years to build and “cannot be acquired, replicated, or fast-tracked.” Together with ventures spanning iFLYTEK’s education platform, streaming service Vidio, and a robotics joint venture with China Mobile, the ecosystem generates an estimated 131 million GPU-hours of annual AI computing demand – workloads that could fill SMX01 before a single external customer signs.

‘The Market Is Wrong’
Pluang’s sum-of-the-parts valuation pegs DSSA’s enterprise value at roughly $14 billion, with GEMS accounting for $7.6 billion, the geothermal portfolio $2.6 billion, and the implied XLSmart stake $2.4 billion.

The brokerage acknowledges the stock looks expensive at 42 times estimated 2026 earnings, but contends the growth-adjusted picture tells a different story. At 1.4 times price-to-earnings growth, DSSA trades at the lowest multiple in the global data center peer set – against 9.0 times for Equinix, 4.5 times for Australia’s NEXTDC, and 1.9 times for China’s GDS Holdings – while compounding earnings per share at 28% to 31% annually through 2030.

“The discount is structural, not fundamental: DSSA is still classified and modelled as a coal conglomerate,” the report said. Non-coal revenue is forecast to grow from $303 million in 2025 to $1.7 billion by 2030, lifting net margins from 8.3% to 13.6%.

Pluang identified three catalysts converging within 36 months: the signing of an anchor hyperscaler tenant at SMX01, which alone could re-rate the data center business from $180 million toward as much as $1 billion; the first geothermal plant coming online; and the crystallization of the XLSmart and DANA ecosystem within the group.

The risks are not trivial. Coal price deterioration remains the primary near-term earnings vulnerability, and the brokerage also flagged regulatory approvals for SMX01’s operations, geothermal development timelines, uncertainties around the Danantara single-gate export payment system, and DSSA’s reliance on Chinese partners, including iFLYTEK and China Mobile for its AI application layer.

Still, for investors willing to look past the coal label, Pluang’s conclusion is unambiguous: the conglomerate discount is not a warning sign but a buying opportunity. DSSA shares trade on the Indonesia Stock Exchange and are accessible to retail investors through investment platforms including Pluang.

Pluang partners with PT Pluang Maju Sekuritas and PT Sarana Santosa Sejati (Level II PPE Partner), which are licensed and supervised by the OJK.