Indika Energy (INDY) Officially Entered the Electric Vehicle Business

President Director of PT Indika Energy Tbk, Arsjad Rasjid. – Special , JAKARTA – Coal mining issuer PT Indika Energy Tbk. (INDY) expanded its business to the electric vehicle sector through the establishment of a business entity, PT Electra Mobility Indonesia (EMI). In his report to the Indonesia Stock Exchange, Indika Energy’s Corporate Secretary Adi Pramono said that on April 5, 2021, INDY and its subsidiary, PT Indika Energy Infrastructure, established the company PT Electra Mobility Indonesia (EMI).

The aims, objectives and business activities of EMI include wholesale trading of motorcycle spare parts and accessories; wholesale trade of various auto parts, components, accessories; as well as providing management consulting services. Also read: Indika’s ambition (INDY) to leave dependence on coal “The total capital channeled to EMI reaches Rp. 40 billion,” he explained, Wednesday (7/4/2021). INDY holds 99.9975 percent of EMI shares or IDR 39.99 billion. Meanwhile, Indika Energy Infrastructure (IEI) only holds 0.0025 percent of EMI shares or the equivalent of IDR 1 million. Meanwhile, all IEI shares are owned by INDY.

Adi explained that INDY’s participation in EMI is the company’s step to expand its business into the electric vehicle sector in Indonesia. Also read: The Indika Group’s Mission to Boost Performance in 2021 Previously, Indika Energy, through a joint venture with Fourth Partner Energy, was ready to spend US $ 500 million in the next 4 years to work on electric power projects. President Director of Indika Energy Arsjad Rasjid said that the joint venture that the company recently formed with Fourth Partner Energy will invest in Indonesia up to US $ 500 million from 2021 to 2025.

“Until it reaches a certain scale, we will use funding through JV equity. If the value and number of projects reaches a large scale, we will seek funding from third parties, said Arsjad to Bisnis , Friday (5/3/2021). Also Read: Petrosea (PTRO) Kick and Billions of Lo Kheng Hong For information, INDY through its business entity PT Indika Tenaga Baru established a joint venture company (JV) with Fourth Partner Energy Sinergy, a business entity of Fourth Partner Energy (4PEL), under the name PT Empat Mitra Indika Tenaga Surya or EMITS. INDY holds a share of ownership of the JV at 51.001 percent, while 4PEL holds 48.999 percent.

The objectives and business activities of EMITS will be related to solar power projects, including providing consulting services, building construction, operation and maintenance of electrical installations, rental of power plants, and IPP activities for solar power plants (PLTS). Meanwhile, the JV’s first project will focus on assets currently owned by the Indika Energy Group. In addition, EMITS will also target various multinational companies in Indonesia who are clients of Fourth Partner Energy.

On the other hand, INDY admits that it is open to exploring the infrastructure sector for electric vehicle charging or electric vehicle charging stations (SPKL) through this joint venture. The reason is, apart from being a provider of solar energy solutions from India, 4PEL is also expanding its business in the infrastructure for charging electric vehicles. Meanwhile, Arsjad said that the establishment of EMITS would contribute to the achievement of Indika’s commitment to increase the share of revenue from the non-coal sector by 50 percent by 2025. “In 2025, this JV is targeted to contribute US $ 271 million,” said Arsjad.