JAKARTA – PT Indika Energy Tbk (INDY) admits that its performance at the end of 2024 will not be as brilliant as last year, especially after the divestment of its coal mine, PT Multi Tambang Jaya Utama (MUTU), which was completed last February. After this divestment, INDY's coal segment is now only supported by PT Kideco Jaya Agung (Kideco).

Kideco, INDY's only coal business line now, still supported revenue until September (9M) 2024 by 87% or US$1.4 billion. As of 9M 2024, INDY only recorded revenues of US$1.8 billion, down 22.4% year-on-year (yoy). In fact, its net profit fell by 63.3% yoy to US$34.4 million.

"With a lot of investment, net profit cannot be multiplied by 3-4 folds. For this year, it's definitely lower; sales are lower, due to the decline in coal prices, as well as the absence of contribution from MUTU," explained Retina Rosabai, Director and Group Chief Financial Officer of INDY, when met at the INDY Public Expose today (20/11).

It should be noted that MUTU divestment and expansion in the non-coal business are part of INDY's strategy to achieve a balanced portion of revenue between the coal and non-coal segments by 2028. This target is actually delayed from 2025 which was announced by management in 2020.

"Indeed, external factors, combined with internal factors, are preventing us from achieving this target in 2025," admitted Azis Armand, Vice President Director and Group CEO of INDY, when met on the same occasion. (ZH/LM)