PT Indika Energy (INDY) has secured a multicurrency loan of Rp6.1 trillion (US$376 million) from four major domestic banks, aimed at both refinancing existing debt and developing the Awak Mas gold mining project in South Sulawesi.
The financing package includes US$203 million (Rp3.29 trillion) and Rp2.8 trillion in rupiah-denominated loans. The participating banks are Bank Mandiri (BMRI), Bank Negara Indonesia (BBNI), Bank DBS Indonesia, and Bank UOB Indonesia.
“This transaction is part of our broader strategy to support Indika's transition from coal to more sustainable energy and industrial sectors,” INDY’s Corporate Secretary, Adi Pramono, said on Thursday, June 26, 2025.
According to a disclosure filed with the Indonesia Stock Exchange (IDX), the loan will be used for two primary purposes, namely to fully repay a US$250 million loan facility signed on March 2, 2023, including all associated fees, interest, and costs; and to finance the development of the Awak Mas gold project, managed by INDY’s subsidiary PT Masmindo Dwi Area.
Several of Indika’s subsidiaries are acting as guarantors of the loan, including PT Indika Inti Corpindo, PT Tripatra Multi Energi, PT Tripatra Engineering, PT Tripatra Engineers and Constructors, and Tripatra (Singapore) Pte. Ltd., all of which are wholly owned by Indika.
In addition to the loan agreement, INDY has also signed supporting documents, such as the facility letter, account pledge agreements, and intercreditor letters. The loan facility is secured under the same terms as INDY’s US$455 million 8.75 percent senior notes due in 2029.
The Awak Mas gold project, located in South Sulawesi, is estimated to contain 1.1 million ounces of gold reserves and 2 million ounces of gold resources, according to INDY’s official website.
Despite this strategic shift, Indika has faced financial headwinds. The company’s net profit attributable to shareholders in 2024 plunged 91 percent to US$ 10.08 million, from US$119.98 million in 2023. Revenue also dropped from US$3.02 billion to US$2.44 billion.
In the first quarter of 2025, the decline continued, with profit sinking 85 percent year-on-year to US$2.89 million, and revenue down 13 percent to US$489.59 million.
This loan and pivot toward gold mining underscore INDY’s attempt to diversify revenue streams and reduce dependence on coal, aligning with its long-term goal of building a greener and more resilient energy portfolio.
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