Company History

Company History

PT. RatuPrabu Energi Tbk was established on March 31, 1993 under the name PT. AronaBinasejati and her business were initially engaged in the manufacturing of wooden furniture, which is the furniture and household furnishings industry made of wood, bamboo and rattan with an emphasis on outdoor furniture production with the aim of the Dutch and Canadian markets. In accordance with the development of the international market in mid-2002 the Company diversified its products, namely indoor furniture that uses raw materials of pine wood and rubber wood, so that the Company also succeeded in expanding its market objectives to America, Australia and Asia. In 2003 the Company made an Initial Public Offering of 95,000,000 shares with a nominal value of Rp. 500 per share, and on April 30, 2003 these shares were listed on the Indonesia Stock Exchange (formerly the Jakarta Stock Exchange) with the ARTI stock code.

In the following years the Company began to experience constraints in its production, which since 2006 the Government of Indonesia has increasingly increased the eradication of illegal logging that indirectly occurs in limiting the supply of raw material availability. This situation causes difficulties in the procurement of raw materials and increases in production prices which results in high cost of goods sold. The Company also suffered losses, negative cash flow from its business activities, then in April 2007 the Company stopped its operational activities and all employees were laid off.

In 2008, through new management (another party) acquired (backdoor listing) of PT. AronaBinasejati, Tbk, which at the same time legally and operationally changed its business line from furniture to energy and changed its name to PT. RatuPrabuEnergi, Tbk. There are 2 (two) main considerations for changing business lines into the Oil and Gas sector. First, because new management is an experienced entrepreneur who has been in the energy sector for decades. The second reason is because the investment business in the energy sector is considered to have a fairly good business prospect at the time and in the future.

As an initial step in changing business activities, the Company made a 99.99% acquisition of PT. Lekom Maras is a company engaged in oil & gas both production and services. PT. Lekom Maras itself has been established and operating since 1975, with its initial business being Non Destructive Testing (NDT), which is testing activities on the level of damage of an instrument / object to ascertain whether the device is still suitable for use or not. Then PT. Lekom Maras developed and began to expand services by diversifying horizontally by forming new business units (products) that still have links (both in the Oil and Gas sector), precisely in 1991 to form the Tubular Service Division (TSD) division, then in 1997 established a division that focused on procuring mining heavy equipment for rent such as rigs by forming the Hydraulic Work Over (HWO) division.

Given the increasingly promising and profitable oil and gas market, in 2002 PT. Lekom Maras entered the oil and gas production sector by operating oil and gas blocks (wells), so that in 2003 the Company produced oil and gas, by acquiring the Abab, Raja, Dewa block in South Sumatra. A year later PT. Lekom Maras acquired PT. Bangadua Petroleum in order to operate the oil block in Jatibarang Cirebon through the Contract Technical Assistant mechanism with Pertamina.