RAJA Accelerates Upstream–LNG Expansion, Target Price Raised to Rp 7,900
Poin Penting
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JAKARTA, investortrust.id — PT Rukun Raharja Tbk, or RAJA, is entering a new phase of expansion across Indonesia’s gas value chain after the company outlined a series of upstream, midstream, and LNG initiatives during its public presentation on Monday, Oct 27, 2025. The moves prompted analysts to raise their valuation outlook and project stronger long-term performance for the integrated gas company.
Henan Putihrai Sekuritas has revised its target price for RAJA to Rp 7,900, implying more than 21 percent upside from Wednesday’s closing price of Rp 6,500. The brokerage based its valuation on a 10-year discounted cash flow model, applying a weighted average cost of capital of 10.82 percent, a terminal growth assumption of 5 percent, and an estimated enterprise value of US$2.1 billion by 2034.
Analyst Irsyady Hanief said RAJA’s management detailed several expansion programs that will shape the company’s medium- and long-term earnings strength. “The upcoming acquisition is expected to improve production, strengthen financial performance, and reinforce long-term operational stability,” he wrote in a research note released on Wednesday.
RAJA, through its subsidiary PT Raharja Energi Cepu Tbk, is finalizing the acquisition of a minority stake in one of Indonesia’s major oil and gas blocks. The company already holds a 2.2423 percent participating interest in the Cepu Block and 8 percent in the Jabung Block, both non-operating but cash-generative positions that improve RAJA’s upstream resilience.
The company is also accelerating its LNG expansion. RAJA has signed a Conditional Share Sale and Purchase Agreement to acquire a Banten-based gas trading company while conducting due diligence to purchase two LNG carriers and one Very Large Gas Carrier. These vessels will strengthen RAJA’s control of LNG logistics and reinforce its position as an emerging integrated LNG player.
In addition, RAJA and a strategic partner are completing a feasibility study for an LNG terminal in Banten and preparing the groundwork for an LNG plant in Kalimantan. To support these developments, RAJA has established PT Banawa Rezeki Optima, a subsidiary in which it owns 99.99 percent, to serve as a holding and management consulting entity for domestic and international shipping operations.
The company is simultaneously restructuring its midstream businesses into a dedicated subholding by late 2025 or early 2026. RAJA’s midstream portfolio covers gas transportation of 65 MMscfd, gas compression capacity of 60 MMscfd, LPG terminal operations of 1,000 metric tons per day, and a clean-water distribution network.
Henan Putihrai Sekuritas said the subholding will be formed through internal consolidation and intra-group acquisitions before RAJA considers strategic options, including a potential initial public offering to unlock further growth.