CEO of PT Indika Energy Tbk (INDY), Arsjad Rasjid, said on Wednesday (03/24), the coal miner to spend US$500 million on the solar panel project in the next five years - Photo by the Company

JAKARTA (TheInsiderStories) – CEO of PT Indika Energy Tbk (INDY), Arsjad Rasjid, said on Wednesday (03/24), the coal miner to spend US$500 million on the solar panel project in the next five years. The reasoned, Indonesia still has a lot of homework to improve the renewable energy industry.

Recently, the company has established a joint venture company (JVC), 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.

Both parties injected capital Rp27.97 billion (US$1.95 million) in the new entity and the unit will hold 51.0 percent at the JVC 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. Most of the funds used for the subsidiary, PT Petrosea Tbk (IDX: PTRO).

Vice president director and CEO, Azis Armand, reported 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.

Indika is an Indonesian integrated energy company through investment strategic in energy resources, such as coal mining through Kideco and Multi Tambangjaya, coal trading through Indika Capital Investment Pte. Ltd., Energy Services through PT Tripatra Engineers & Constructors and PT Tripatra Engineering, and mining contractor via Petrosea.

Then, an investment in renewable and environmentally friendly energy through PT Tripatra Multi Energi, energy infrastructure via PT Mitrabahtera Segara Sejati Tbk (IDX: MBSS), PT Sea Bridge Shipping, PT Cotrans Asia, PT Indika Logistic & Support Services, PT Kuala Pelabuhan Indonesia.

Then fuel storage terminal via PT Kariangau Gapura Energy Terminal, coal steam power plant through PT Cirebon Electric Power and PT Prasarana Energi Cirebon, also a digital technology service company via PT Indika Digital Teknologi.

US$1: Rp14,300

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