USFilter, Enerkon set new ventures

JAKARTA (JP): USFilter of the United States will expand its water treatment business into Indonesia by October, a director of the company said on Saturday.

USFilter's director for Southeast Asian affairs, Richard Jacob, said here that his company would tie up with PT Enerkon to work on several projects.

"We're now working on this joint venture. Hopefully, we can formally announce it in October."

The companies, he said, had not yet decided on their stake in the venture, but USFilter would possibly hold the majority.

Although Jacob declined to discuss the fund needed to capitalize the venture, he said it should generate total revenues of at least US$150 million annually in the next five years.

He believed now was the right time to enter Indonesia.

"I think the crisis facing Indonesia will end in two years. And when it starts growing, we'll be ready to benefit from it."

He added the firm had already secured a number of projects in the country.

USFilter, a widely diversified company with 22,000 workers worldwide, has dealt with engineering and procurement services in Indonesia for three years. It built a water processing facility for Lippo Cikarang in Bekasi, West Java.

PT Enerkon, founded in 1995, has also worked in a wide range of businesses, from oil and gas to petrochemicals, power, manufacturing and property.

Considering the interests of Enerkon, Jacob said USFilter was also interested in expanding its venture to cover other fields, particularly the oil and gas sectors. (bnt)