Aboitiz eyes power venture in Indonesia

MANILA, Philippines - With the Aboitiz Group currently exploring opportunities to expand its power business abroad, Indonesia has become a leading candidate for its maiden power venture overseas.

 “We’re basically looking at Indonesia as an opportunity, although nothing firm is in the pipeline,” Aboitiz Equity Ventures Inc. (AEV) president and chief executive officer Erramon I. Aboitiz said.

“We still don’t know where the first power opportunity will come. What I can say is we’re probably spending more time in Indonesia than in other countries,” he added.

Aboitiz said the company likes what it sees at present in Indonesia given the country’s similarity in terms of demographics with the Philippines as well as its need for more power in the future.

“We’re encouraged at the structural change that is happening in the government. I think that is positive as far as business people are concerned. They do like to see a market-based economy and that ensures more of a level playing field and opportunities for us. We like what we see in Indonesia,” he said.

Aboitiz, however, said the group is not limiting itself to Indonesia as it is also looking at other Southeast Asian countries like Vietnam and Myanmar in particular.

“Our preference for abroad is try to see if we can make an acquisition or invest in an existing business. But frankly, we haven’t found anyone at this point. When we go in, we feel we have to find a partner that sees us as more than just a financial partner. So what we’re looking for is someone seeing us in our capabilities as something that would strengthen this company to be able to grow and to expand together with them,” he said.

AEV’s energy unit Aboitiz Power Corp. is one of the biggest power players in the country with a total attributable power portfolio of 2,210 megawatts consisting of hydorpower, geothermal, coal and oil-based facilities.

Aboitiz said the company has already invested about P150 to P200 billion over the last seven years in the country’s power sector alone.

At present, Aboitiz said power comprises over 70 percent of AEV’s business. It was only 29 percent of the group’s business in the early 90s, he said.

AEV made its maiden international venture last June after food unit Pilmico Foods Corp. Pilmico acquired 70-percent stake in Vin Hoan 1 Feed JSC, one of the largest aqua feed producers in Vietnam.