ICTSI unit divests from Indonesian subsidiary

• International Container Terminal Services, Inc.’s wholly owned subsidiary, ICTSI Far East Pte. Ltd., is divesting from its Indonesian subsidiary, PT ICTSI Jasa Prima

• ICTSI Far East on January 22 signed a conditional share sale and purchase agreement with PT Sarana Kelola Investa in connection with the sale of 80.19% shares of IJP for US$2 million

• IJP subsidiary PT PBM Olah Jasa Andal has a 15-year equipment supply cooperation agreement with PT Pelabuhan Indonesia II at the Port of Tanjung Priok in Jakarta

•  ICTSI said the sale allows it to rationalize operations and redirect resources in Indonesia

International Container Terminal Services, Inc. (ICTSI) is divesting from its Indonesian subsidiary, PT ICTSI Jasa Prima (IJP), through its wholly owned subsidiary, ICTSI Far East Pte. Ltd.

This move, said the listed company, is part of a broader initiative to optimize operations and focus on full concession contracts, aligning with ICTSI’s strategy of controlling all aspects of the business.

On January 22, ICTSI Far East formalized the divestment by signing a conditional share sale and purchase agreement with PT Sarana Kelola Investa. The agreement encompasses the sale of 80.19% shares of IJP for a total consideration of US$2 million. The shares were initially acquired by ICTSI Far East on May 3, 2012, and the transaction involves 470.831 million shares at a unit price of $0.00425.

The completion of the agreement is contingent upon meeting various requirements, including securing approval for the change in ownership at the Indonesia Stock Exchange and other standard conditions preceding the transaction’s closure.

IJP, a listed company in Indonesia, specializes in the development, construction, and operation of terminals and maritime logistic infrastructure. Notably, one of its subsidiaries, PT PBM Olah Jasa Andal (OJA), has a significant equipment supply cooperation agreement with PT Pelabuhan Indonesia II (Pelindo) at the Port of Tanjung Priok in Jakarta, Indonesia, signed on June 5, 2013.

With the divestment from IJP, ICTSI aims to streamline its operations and reallocate resources more effectively in Indonesia. The port operator’s focus remains on full concession contracts, where it exercises control over regulatory and commercial activities.

Following the divestment, ICTSI’s footprint in Indonesia will now be centered around the East Java Multipurpose Terminal (EJMT) in East Java. EJMT—which broke ground on October 12, 2023—is slated to commence operations in September 2024.

READ: ICTSI breaks ground on East Java terminal

Additionally, in January 2023, ICTSI chose not to renew its cooperation agreement at Makassar Container Terminal in South Sulawesi, Indonesia, aligning with its strategic realignment efforts.

READ: ICTSI’s Indonesia unit ends Makassar Terminal business

This divestment, said ICTSI, underscores its commitment to refining its business portfolio and reinforcing its position in key strategic ventures, ultimately enhancing efficiency and responsiveness within the dynamic shipping and logistics landscape.