Indika Energy Enters Health Sector

- Minggu, 29 Januari 2023 | 19:35 WIB
Indika Energy Enters Health Sector
Indika Energy Enters Health Sector

DEPOK (eNBe Indonesia) - Coal mining firm Indika Energy (INDY) has consistently been valued way below peers despite its effort to carry out a diversification program including in the development of renewable and EV Ecosystem.

Most recently, INDY has formed a joint venture in the health sector and is collaborating with a Canadian electric motorbike manufacturer.

As shown in the table, INDY is now valued way below equity, and in fact, the only major coal miner traded at that level.

Indika Energy’s Head of Corporate Communication Ricky Fernando said, as quoted by, a joint venture between Indika Energy and Bioneer Corporation, Bioneer Indika Group (BIG) would focus on developing ExiStation.

The ExiStation is a molecular diagnostic system that was previously used in Indonesia during the Covid-19 pandemic. In said JV, INDY and Bioneer each own a 50% stake in BIG.

INDY said that the inclusion of shares of its subsidiary PT Indika Medika Nusantara in BIG was a step by INDY as a group to expand and diversify its business into the Indonesian health sector.

Apart from the health sector, INDY also continues to expand its diversification into electric motorbikes. INDY is known to have recently collaborated with an electric motorcycle company from Canada, Damon Motors.

With INDY, Damon will develop a global motorbike platform specifically for the needs of commuters in geographic areas dominated by two-wheeled mobility.

Ricky explained, INDY sees Indonesia as a potential market for electric two-wheeled vehicles.
Meanwhile, Damon is currently developing a cleaner, safer and more efficient motorcycle platform, which is in line with Indika Energy’s commitment to support the achievement of carbon neutrality in Indonesia.

Meanwhile INDY said it diversified into the essential oil business through its subsidiary, PT Indika Multi Properti (IMP).

That said, IMP invested in PT Natura Aromatik Nusantara (NAN), engaged in the essential oil industry. IMP is set to purchase NAN shares at value of Rp179.6 billion, and IMP will own a 46% stake in NAN.

NAN is a producer of aroma chemicals, essential oils and natural extracts for the flavor and fragrance industry. NAN was founded in 2014 and already has a customer base in Asia, Europe and America.

On coal, INDY targets production to reach 32.8 million tons this year, lower than last year’s target (34 million tons). Kideco will produce 34 million tons. INDY also projects that coal prices will remain at a positive level this year.

Previously, Indika’s President Director and Group CEO Arsjad Rasjid said Kideco’s entry as a consolidated subsidiary would provide strategic added value to Indika Energy.

Kideco is the third largest coal producer in Indonesia, with good coal product specifications, and low levels of sulfur and ash content.

“Kideco is a coal mining asset with a large production scale, high efficiency, and a solid operational, safety and environmental track record for more than 20 years,” said Arsjad. For this year, Kideco targets to produce 34 million tons of coal, and PT Indika Mineral Investindo (IMI), also subsidiary of Indika targets 1.8 million tons.

Meanwhile, Indika said its subsidiary, PT Indika Mineral Investindo (IMI), has in 26 September 2022 acquired PT Perkasa Investama Mineral (PIM), adding non coal assets.

Indika opts to reduce exposure in coal, and targets the non coal sector to contributing 50% earning by 2025.***

Editor: Adrianus Nulangi Madaala



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