Seroja Investments says subsidiary PT Pulau Seroja Jaya (PT PSJ) has entered into a coal barging agreement with PT Adaro Indonesia.

The coal barging agreement was won by PT PSJ through a competitive bidding process where PT PSJ emerged as the bidding party which made the best offer. Through this deal, PT PSJ will further strengthen and enlarge their strategic relationship with PT Adaro Indonesia, which is one of the largest coal producers in Indonesia.

The contract involves transporting coal from PT Adaro Indonesia, to various buyers located within the Indonesian archipelago for a period of 7 years. PT PSJ estimates the contract value to be US$150 million ($194 million).

PT PSJ is providing this transportation service to its Indonesian customers using its Indonesian-flagged vessels owned and operated by PT PSJ, in full compliance with cabotage laws as the transportation will be carried out in Indonesian waters.

Apart from the deemed interests of Edwin Soeryadjaya and Sandiaga Uno, who are key minority shareholders of PT Adaro Energy Tbk, the holding company of PT Adaro Indonesia, none of the company’s other directors or substantial shareholders has any interest, direct or indirect, in the above transactions.