Indika Energy Accelerates IDR 6.8 Trillion Awak Mas Gold Mine Project

PT Indika Energy Tbk (INDY) is accelerating the completion of its USD 429 million, or around IDR 6.8 trillion, Awak Mas gold mine project in South Sulawesi as it seeks to achieve its target of generating 50% of revenue from non-coal businesses by 2028.

The project, which has appointed Macmahon as the main contractor under a contract worth AUD 463 million, had reached 43% construction progress as of October 2025. The company is targeting production trials by the end of 2026 before commencing commercial operations in early 2027.

According to a research report by UOB Kay Hian Sekuritas, the initial phase of gold production at Awak Mas is targeted at 100,000 ounces per year and is projected to increase to 150,000 ounces by 2029. The target is supported by total reserves of 1.9 million ounces, with the mine expected to operate until 2041.

Development of supporting infrastructure, including roads, waste disposal facilities, and power transmission lines, is being accelerated to maintain cash costs at USD 1,150 per ounce. Meanwhile, total operating costs, including royalties, are estimated at USD 1,800 per ounce.

To support its business diversification strategy in 2026, the company has allocated IDR 445 billion in non-coal capital expenditure. The allocation includes USD 20.4 million for the Awak Mas project, USD 5.8 million for green initiatives, and funding for the development of its electric vehicle ecosystem.

The energy transition strategy is progressing alongside a recovery in the company's financial performance. In the first quarter of 2026, INDY posted a 2.3% year-on-year increase in revenue to IDR 8.31 trillion, while net profit surged 145.9% to IDR 118.3 billion.

Amid its business transformation, coal mining subsidiary PT Kideco Jaya Agung remained the company's main revenue contributor, generating USD 377.4 million, or 72.8% of INDY's total gross revenue.

Responding to market speculation regarding the planned divestment of a 91% stake in Kideco valued at USD 1 billion, management issued an official clarification to the stock exchange authority.

"In response to recent media reports regarding the company's investment portfolio, the company does not comment on market rumors or speculation," said Adi Pramono, Corporate Secretary of PT Indika Energy Tbk.

Management emphasized that all material information regarding the company's business developments will be disclosed transparently through the Indonesia Stock Exchange's official disclosure channels.

The commencement of commercial operations at the Awak Mas gold mine in 2027 is expected to be a key catalyst for a re-rating of INDY shares, which rose to IDR 2,540 apiece in trading on Monday (July 27, 2026).

Source: https://www.beritajejakfakta.id/indika-energy-pacu-proyek-emas-awak-mas

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