Two decades of active investments in Indonesia and counting.
1997 was a year of economic and political uncertainties in Indonesia. It was also the year of the birth of Saratoga Group. At a time where investors shied away from the turmoil, the co-founders of Saratoga group saw a need to support their country during the difficult time and an opportunity to take the risk to invest in the economy. Based on the conviction, Saratoga group was established in 1997 as an active investment company focused on Indonesia.
During the early years, the group was actively involved in the commodity and infrastructure sectors. The group invested in Adaro group (ADRO) in 2001 with the rationale that the nation would need energy to fuel the economy, and coal was the most accessible energy source. The group worked closely with the company with the goal to shape it into a pit-to-port integrated coal company. In 2008, Adaro’s Initial Public Offering (IPO) became the largest IPO in the Indonesian market. Today, Adaro continues to be the largest coal mining company by market capitalization.
Following the success of Adaro, Saratoga continued to look at other sectors that had growth potential. In 2004, together with Provident Capital, it was offered an opportunity to invest in a small independent tower company that owned a total of seven towers across Indonesia. Saratoga managed to grow the company substantially over time and renamed the company to Tower Bersama Infrastructure Group (TBIG). Today, TBIG has more than 13,000 telecommunication sites serving more than 22,000 tenants and is the leading tower company in Indonesia by market capitalization.
In recent years, Saratoga saw a growing trend in Indonesia’s consumer sector. In 2010, it invested in Mitra Pinasthika Mustika (MPMX), a diversified automotive company with leading market shares in motorcycle retail and distribution, lubricant oil, and motorcycle financing. Post-acquisition, Saratoga guided MPM to strategically restructure their various business pillars. Today MPM is one of the leading smart mobility companies and is ranked as one of the best 50 Indonesian companies by Forbes Indonesia.
In June 2013, Saratoga tapped into the domestic capital market, successfully listed itself on the IDX, and became the first of its kind to be listed in the country. Going forward, the group will continue to focus on its strengths and capabilities to explore investment opportunities, create values, and grow its investment portfolio across the three key pillars of Indonesian economy: Natural Resources, Infrastructure, and Consumer.