JAKARTA. PT Indika Energy Tbk (INDY) plans a business diversification to the electric vehicles sector by investing IDR 40 billion. The company took this action to reduce its revenue exposure to losses from the coal sector.
The Vice President Director and CEO of Indika Energy, Azis Armand, admitted that his company expected the non-coal and coal contribution would reach a 50:50 ratio in its consolidated revenue in 2025. Currently, the non-coal segment’s addition drops to 13.4% from 24% in Q1 2020, according to Armand in public expose, Monday (3/5).
In addition to diversification to the electric vehicle sector, other attempts to reach a well-balanced revenue contribution between coal and non-coal segments were made through logistics infrastructure, gold and other minerals mining, and renewable energy business sector, including the electric vehicle.
Previously, INDY and its subsidiary, PT Indika Energy Infrastructure, had established PT Electra Mobilitas Indonesia (EMI) on April 5, 2021. This newborn company operates in the electric vehicle sector, with a total investment of IDR 40 billion, comprising PT Indika Energy with IDR 39.99 billion and PT Indika Energy Infrastructure adding IDR 1 million. (AM/ZH)