PT Indika Energy Tbk (IDX: INDY) has established PT Electra Mobility Indonesia (EMI), an electric motorcycle parts and accessories producer - Photo by the Company

JAKARTA (TheInsiderStories) – Mining company, PT Indika Energy Tbk (IDX: INDY) has established PT Electra Mobility Indonesia (EMI), an electric motorcycle parts and accessories producer, the management announced yesterday. The new entity managed by the miner and its wholly owned subsidiary, PT Indika Energy Infrastructure.

According to the spokesman, Adi Pramono, both parties has prepared an investment Rp40 billion for the new unit. In EMI, the coal miner hold 99.99 percent shares and the remainingbelongs to Indika Energy Infrastructure.

Last month, Indika has established a joint venture company, PT Empat Mitra Indika Tenaga Surya (EMITS) with a solar power company from India, Fourth Partner Energy to provides integrated solar power solutions in Indonesia. EMITS will operates more than 550 megawatts (MW) of solar power plants in India and a number of other countries.

According to the CEO, Arsjad Rasjid, in the next five years, the miner will spend $500 million on the solar panel project. Both companies has injected capital Rp27.97 billion (US$1.92 million) in the new entity. Through the unit, Indika will hold 51.0 percent at the venture firm and the rest owned by Fourth Partner Energy.

In this year, Indika has lowering the coal production targets from 33 million tones (MT) of coal to 31.4 MT of coal in 2021. Until third quarter of 2020, the units, PT Kideco Jaya Agung produced 23.9 MT of coal and PT Multi Tambangjaya Utama (MUTU) at 1.3 MT of coal. To support the targets, the miner prepared a capital expenditure around $130 million and most of the funds used for Petrosea.

Earlier, vice president director and CEO, Azis Armand, said various diversification steps are being carried out during last year, such as build a storage terminal in Kariangau, East Kalimantan for ExxonMobil, which has been operating since early November 2020. They also making strategic investment in gold miner, Nusantara Resources Ltd., to develop the Awak Mas Project, a gold mine in South Sulawesi .

The company have an  ownership of 45.8 percent in Nusantara Resources and 25 percent in its unit, PT Masmindo Dwi Area. Indika has an option to increases the ownerships up to 40 percent in Masmindo. This gold mine is expected to start the commercial operations in 2022 or 2023 and to produce as much as 100,000 ounces of gold per year.

Currently, Indika run energy resources, services and infrastructure businesses. The units are PT Kideco Jaya Agung, PT Multi Tambangjaya Utama PT Tripatra Multi Energi, PT Petrosea Tbk (IDX: PTRO), and PT Mitrabahtera Segara Sejati Tbk (IDX: MBSS).

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com