PT Indika Energy Tbk (IDX: INDY) targeting the coal production from its two subsidiaries around 31.4 million tones of coal in 2021 from a year ago 30.95 MT of coal - Photo by the Company

JAKARTA (TheInsiderStories) – Publicly listed firm, PT Indika Energy Tbk (IDX: INDY) targeting the coal production from its two subsidiaries around 31.4 million tones (MT) of coal in 2021 from a year ago 30.95 MT of coal. Around 30 MT of coal will contributed from its unit, PT Kideco Jaya Agung, and 1.4 MT of coal from PT Multi Tambangjaya Utama.

As of the first nine months of 2020, the company has produced 23.9 MT of coal through Kideco and 1.1 MT of coal from Multi Tambangjaya. When compared to the same period last year, the production of Kideco fell 6.6 percent and Multi Tambangjaya dropped by 7 percent, said the management.

To support the targets, Indika prepared a capital expenditure up to US$130.7 million. The coal miner allocated $80 million for PT Petrosea Tbk (IDX: PTRO), $14.3 million for PT Interport Mandiri Utama, and $12.9. million for Kideco.  The fuel storage terminal project in Eas Kalimantan managed by Interport need costs of $30.2 million. The project has been completed and operated since early November 2020.

In addition, said the deputy director, Azis Armand, said Petrosea and PT Mitrabahtera Segara Sejati Tbk (IDX: MBSS) aimed to diversify its business portfolio outside the coal sector. The issuer targeting the non-coal sector to contribute up to 50 percent of overall revenues by 2025.

In this month, Indika has signed an agreement with state-owned energy firm PT Pertamina and  other coal producer, PT Adaro Energy Tbk (IDX: ADRO), to develop coal gasification into Dimethyl Ether. In order to support earnings, the miner has taken steps to reduce operating cash costs at its 91 percent-owned coal mining subsidiary, Kideco, from $35.8 to $32.3 per ton in the first half of 2020.

Its contract mining subsidiary Petrosea and the engineering subsidiary PT Tripatra Multi Energi, are also seeking new contracts to boost their contract order books which have been declining in recent years. The other unit, PT Indika Logistic & Support Services joined with CT Corp Infrastructure, PT U Connectivity Services, and PT Terminal Petikemas Surabaya has win the second phase of Patimban Port project in Subang, West Java.

The development of phase 2 is scheduled starting this month. The public private partnership scheme have period  40 years from the operation phase 1 of the port last December. Total values of capital for the joint venture agreement around Rp18.9 trillion and the operating costs about Rp64.3 trillion.

“The consortium aims to turn Patimban Port into a modern and efficient port where technology is an integral part of the management of the Patimban Project,” said Adi Pramono, the spokesman of Indika on Jan. 4.

The port project included in a national strategic project and the first phase construction for container terminals have a capacity of 218,000 vehicles and 250 thousand TEUs (twenty foot equivalent unit). Then, the phase 2 with the optimum capacity for 600,000 vehicles and containers of 3.75 million TEUs.

Indika is an integrated energy group listed on Indonesia Stock Exchange, with a market capitalization of around Rp4.8 trillion as of Oct. 9. Its principal investment, Kideco, is one of Indonesia’ largest domestic coal producers.

US$1: Rp14,000

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