Published on 11/08/2022 at 09:43 GMT+7 Reading time
PT Indika Energy Tbk has spent US$19.3 million out of the allocated budget of US$193 million towards the company’s subsidiaries and its ongoing gold mine project.
Founded in 1972, Indika is a company that mainly focuses on energy. The company is engaged in different sectors through its subsidiaries such as logistics & infrastructure, minerals, green business and digital ventures. The company is also focusing on developing electric vehicles (EV) and has signed cooperation with foreign companies on two-wheeled EV.
Vice President Director and Group CEO Azis Armand mentioned that the US$19.3 million budget went to Indika’s subsidiaries, namely PT Kideco Jaya Agung of US$3.7 million, Interport of US$1.3 million, Indika Indonesia Resources of US$1.4 million and the Awakmas project of US$7.2 million. They were related to gold mining exploration activities.
Read also: Indika Energy looks for partners, bank loans, suppliers for EV project
Indika posted a net profit of US$200.65 million in the first half of 2022. In addition, the company has completed the transaction for the sale of a total of 704.01 million shares representing its 69.8% share ownership in PT Petrosea Tbk to PT Caraka Reksa Optima on July 28, 2022.
"The sale of Indika Energy's shares in Petrosea is a real step for the company to reduce exposure in the coal business, in line with Indika Energy's commitment to achieve 50% of revenue from the non-coal sector by 2025 and carbon neutral by 2050," Azis explained on August 9, 2022.
The trend of green financing is considered to threaten the sustainability of long-term investment plans in the coal sector. The reason is that projects in the coal sector that require large funding are uncertain. Indonesian Coal Mining Association (APBI) Executive Director Hendra Sinadia said the reduced access to credit for the mining sector would affect smelter development projects, coal gasification, which are projects with large investment budget requirements.
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