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United Tractors Shifts Focus Toward Renewable Energy

The Jakarta Globe
October 8, 2025 | 8:37 pm
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(Photo Courtesy of United Tractors)
(Photo Courtesy of United Tractors)

Jakarta. United Tractors (UT) has been gaining new momentum in recent years, driven by a clear ambition to optimize the use of clean and renewable energy.

As a subsidiary of Astra International -- one of Indonesia’s largest and most diversified conglomerates -- United Tractors is taking a proactive role in advancing the country’s transition toward sustainable energy sources.

Today, UT has grown into one of Indonesia’s key industrial players, operating across five business pillars: construction machinery, mining contracting, mining, construction industry, and energy.

Expanding Beyond Heavy Equipment
UT’s Business Development Director, Iwan Hadiantoro, said the company continues to play a vital role in sectors that have long served as the backbone of Indonesia’s economy. Beyond its core business in heavy equipment, commercial vehicles, and tractors, UT has diversified into mining and energy.

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“United Tractors has been active in the mining business, primarily in coal. In the past, we acquired several coal mines,” Iwan said.

He added that since 2023, UT has also entered the nickel mining sector, recognizing that renewable energy will become as essential as fossil fuels in the long run.

“We currently operate two nickel mines -- one as the majority owner in Konawe, and another through an equity participation in Morowali. These operations are still at the mining stage, but we are also developing a smelter to produce battery materials for electric vehicles,” he explained.

In addition to coal and nickel, UT has been involved in the gold mining business since 2017 through its subsidiary Agincourt Resources, which operates a major mine in North Sumatra. “Agincourt remains a key contributor and an important part of UT’s portfolio,” Iwan said.

Renewable Energy Takes Center Stage
Beyond mining and construction, UT has also expanded into the energy sector through its subsidiary Energia Prima Nusantara (EPN).

UT currently holds a 25 percent stake in a consortium that operates the Tanjung Jati coal-fired power plant with a capacity of 2 gigawatts. However, Iwan emphasized that the company’s future direction lies in renewable energy development.

“Going forward, United Tractors will continue expanding in the energy business -- but our focus will be on renewables,” he said.

This ambition is reflected in several ongoing projects, including mini-hydro and micro-hydro power plants, as well as solar photovoltaic (PV) installations. “Over the past two years, we’ve also been involved in the development of a geothermal project in South Sumatra, operated by Supreme Energy,” Iwan added.

While UT is accelerating its renewable energy initiatives through EPN and Supreme Energy, Iwan acknowledged that coal will remain part of the energy mix for the foreseeable future. “We understand that fossil fuels still play an important role, and renewable energy cannot replace them overnight,” he concluded.

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