Cikarang Listrindo (CIKLIS)

This report evaluates PT Cikarang Listrindo Tbk as a private power company supplying electricity generation, transmission, distribution, and sales to large industrial estates around Bekasi in West Java, Indonesia. The conclusion is that the company represents a relatively strong investment-grade credit among Indonesian private enterprises. Its credit strength is supported by low net debt, designated supply areas, a long-term customer base, and take-or-pay contracts with PLN. Constraints on the rating include the company’s small scale, concentration in industrial estate demand, fuel supply and pricing risks, foreign currency bonds, and dividend policy.

The company is distinct from typical independent power producers or government-owned utilities like PLN. It holds an Integrated Business Permit to Supply Electricity to the Public, supplying industrial customers directly across five major industrial estates: Jababeka, MM-2100, East Jakarta Industrial Park, Hyundai Inti Development, and Lippo Cikarang. According to investor materials as of March 2026, Cikarang Listrindo is the longest-operating private power company in Indonesia, commencing operations in 1993, with 1,144 MW of generation capacity and 47.3 MWp of solar capacity. Including planned additions in 2026, total generation capacity will reach 1,194 MW and solar capacity 70 MWp.

The strongest credit support derives from dedicated supply zones close to demand centers and customer stickiness. First-quarter 2026 investor materials indicate over 2,500 customers, with 73% having relationships exceeding 10 years. Industrial customers account for 92% of Q1 2026 revenue and PLN for 8%. Industrial sectors served include automotive, electronics, plastics, food, chemicals, consumer goods, and data centers. While electricity sales are sensitive to economic cycles, power supply remains essential as long as customers operate, supported by low attrition and minimal bad debt, which underpin revenue quality.