JAKARTA. PT Indika Energy (INDY) is more aggressively diversifying its business to anticipate the fluctuating coal prices.
In the first semester of 2019, INDY's revenue declined by 4.6% to US$ 1.38 billion from US$ 1.44 billion recorded in the same period the previous year. This also affected the company's net profit which also declined to US$ 12.66 million from US$ 76.31 million.
Leonardus Herwindo, Head of Corporate Communications at INDY, explained that INDY's revenue was very vulnerable to fluctuations in coal prices. This makes INDY have to work hard to maintain its performance. One thing that can be done is business diversification.
The business diversification effort has been carried out by INDY since last year, from consulting services to gold mining. In the consulting services segment, INDY established Indika Digital Teknologi (IDT) in September 2018. IDT is a provider of management and information consulting services, communications and technology, and computer facilities consulting services.
INDY is also investing in the gold mining sector through Indika Mineral Investindo (IMI) and in collaboration with Nusantara Resources Limited. This collaboration was carried out by purchasing 33.4 million shares of Nusantara Resources Limited for AU$ 7.68 million (equivalent to US$ 5.11 million).
On 23 January 2019, IMI purchased 2,780,260 Nusantara shares for AU$ 639,400 (AM/AR)