PT Ifishdeco Tbk. (IFSH) signed an amendment to the credit facility agreement with PT Bank Mandiri (Persero) Tbk on September 26, 2023. Muhammad Ishaq, Director of IFSH in his written statement Friday (29/9) said that IFSH had amended the credit agreement revolving working capital of IDR 30 billion and transactional working capital credit of IDR 170 billion with PT Bank Mandiri Tbk (BMRI).M. Ishaq explained that in this amendment IFSH and Bank Mandiri also agreed to extend the due date for 1 year to September 2024. "The purpose of this loan is for additional working capital and working capital for nickel production and IFSH's business development," he said.This transaction is an exempted material transaction and not an affiliated transaction in accordance with OJK regulations in POJK No.17 and 42/POJK/2020. M. Ishaq added that the acquisition of this loan has no material adverse impact on IFSH's financial condition, operational activities or business continuity.Image source: www.ifishdeco.comSource: www.bareksa.com/Ifishdeco IFSH Teken Perubahan Perjanjian Kredit Dengan BMRI Rp200 Miliar

NICKEL Industries (NIC) is committed to producing environmentally friendly nickel products that produce little carbon. One way is to collaborate with PT Sumber Energi Surya Nusantara (SESNA), a renewable energy company that focuses on developing solar energy.NIC Sustainability Manager Muchtazar said that his party is committed together with SESNA to reduce the carbon footprint in order to produce clean and sustainable nickel. The use of solar power plants (PLTS) is considered a concrete step to reduce carbon emissions. "This is one of the efforts we are making to reduce our carbon footprint, including through collaboration with SESNA and making our energy use more efficient," said Muchtazar.The nickel mining and processing area in Morowali, Central Sulawesi, he added, has large solar energy potential, making it very possible for nickel production operations. Collaboration with SESNA is considered a very strategic collaboration. Based on the evaluation results of a number of renewable energy potentials such as hydropower, wind and solar, it turns out that solar power plants (PLTS) have great potential to be used to produce nickel."We are very happy to collaborate with SESNA as a solar power provider from Indonesia. So, we want to prioritize local partners because we want the company's existence to contribute positively to Indonesia's development," said Muchtazar. As a start, the NIC project, through its subsidiary, PT Hengjaya Mineralindo, began utilizing hybrid PLTS with an initial capacity of 395 kilowatt peak (kWp) to see the advantages of using solar energy sources. The use of PLTS developed by SESNA is intended to support mining operations and employee mess. Seeing the good performance of this project, NIC then continued developing the project with a larger capacity, namely 200 megawatt peak (MWp) to be used as an energy source for nickel processing activities or smelters in the Indonesia Morowali Industrial Park area. "So far we are very satisfied with this collaboration and want to immediately increase the energy capacity produced from solar power, both in our mines and smelters in the future," said Muchtazar.The use of PLTS is in line with the sustainability program carried out by Nickel Industries, especially in the environmental pillar. NIC strives to produce nickel that is environmentally friendly or has a low carbon footprint. Currently, nickel is said to be one of the raw materials used to manufacture various products, one of which is electric vehicle (EV) battery products. Therefore, it is hoped that the use of PLTS can produce nickel that is processed sustainably.Muchtazar also denied that the operational costs incurred for using EBT were quite expensive. According to him, PLTS can actually save more costs. "In collaboration with SESNA, this renewable energy can be obtained at the same cost or even cheaper than conventional. So actually by implementing EBT we can also save in the long term," said Muchtazar.NIC hopes that the cooperation in developing PLTS with SESNA can be sustainable in the future so that the nickel mining and processing business can continue to run well. Nickel Industries' reputation in the world of nickel mining is quite respected. In early September 2023, this company received the Sustainability title from the TrenAsia ESG Awards. SESNA is a local renewable energy company that focuses on developing PLTS projects. The focus is as a solution provider starting from the development process, engineering, procurement & construction, as well as operations & maintenance. SESNA also provides a zero capex or solar rental investment scheme for the mining industry interested in transitioning to renewable energy more efficiently. (RO/Z-2)Image source: ANTARASource: www.mediaindonesia.com/Ingin Hasilkan Nikel Ramah Lingkungan Nickel Industries Bangun PLTS

PT Amman Mineral Internasional Tbk. (AMMN) predicts capital expenditure absorption of USD 980 million or around IDR 14.7 trillion (assuming an exchange rate of IDR 15,000 per USD) in 2023.Until the first H of 2023, AMMN absorbed capex of USD 436 million (IDR 6.54 trillion), with details of capital expenditure related to the need to purchase mining equipment, build and upgrade supporting facilities for Phase 7 ore mining activities and Phase 8 overburden removal ( sustaining capex) of USD 132 million.Furthermore, smelter capital expenditure amounted to USD  92 million, processing plant expansion amounted to USD  166 million, and gas and steam power plants (PLTGU) and LNG facilities amounted to USD  46 million."AMMN is expected to spend USD 980 million in capital expenditure in the second semester of 2023," he explainedMeanwhile, for the construction of the smelter, AMMN estimates a completion target of more than 70 percent in December 2023. After the completion of the smelter mechanics in May 2024 (if there is no force majeure). "We will focus on smelter commissioning and start production of the first copper cathodes around 4-5 months later," explained AMMN management.Target 2023AMMN targets copper and gold production growth throughout 2023 which is expected to boost financial performance in semester II/2023. AMMN management explained that throughout 2023, it is targeting concentrate production of 610,000 dry metric tons. Meanwhile, the copper production target is 337 million pounds. "Throughout 2023, AMMN targets gold production to be 529 kilo ounces," wrote management, quoted Friday (29/9/2023). Throughout H I/2023, Management claims that AMMN's mining operations are running efficiently and are on track to match the total number of metric tons mined in fiscal year 2022, despite several external challenges.From October 2022 to April 2023, the Batu Hijau mine experienced unprecedentedly high rainfall, causing delays in mining fresh ore from Phase 7. As a result, mining was fully diverted to Phase 8 overburden stripping, which will allow faster access to Phase 8 fresh ore than originally scheduled.After the rainy season passed and the dry season began, AMMN increased pit water pumping so it could access high-grade Phase 7 ore sooner than originally planned in July 2023.Copper processing continued at full capacity throughout semester I/2023, despite delays in Phase 7 ore mining and product shipments. AMMN succeeded in producing 134 million pounds of copper and 172 kilo ounces of gold. Meanwhile, for sales, AMMN recorded copper sales reaching 76 million pounds with an average selling price of USD 4.48 per pound and gold sales of 119 kilo ounces with an average selling price of USD 2,004 per ounce. On the other hand, AMMN budgeted capital expenditure with details of sustainable capital expenditure of USD 332 million, smelter and PMR of USD 365 million, processing plant expansion of USD 469 million and gas and steam power plants and LNG facilities of USD 226 million.Image source: market.bisnis.comSource: www.market.bisnis.com/AmmanMineral AMMN Siapkan Capex Rp147 Triliun Pada 2023

The application of ESG (Environmental, Social, and Governance) principles in the business world is also starting to be implemented in the Indonesian Mining Industry. PT XL Axiata Tbk (XL Axiata) or (EXCL) through XL Axiata Business Solutions (XLABS) offers innovative solutions that can support mining companies' efforts to implement "green mining" in their operations with a Private Network." Implementing this solution will be able to increase the efficiency of using electricity and gas, thereby potentially reducing carbon emissions by up to 20%.XL Axiata Chief Enterprise and SME Officer, Feby Sallyanto, said that digitalization in the mining industry sector continues to be developed through various initiatives towards environmentally friendly mining standards. These efforts are realized, among other things, through digitalization, namely by modifying processes to increase the efficiency of using electric and gas energy, diverting it to energy sources with much lower carbon emissions. “This step has the potential to reduce carbon emissions by 5% to 20%. "Apart from that, it is also possible to replace diesel-fueled mining trucks with electric trucks or hydrogen-fueled trucks." he said in a release Thursday (21/9).According to Feby, Private Network is a solution that really supports "green mining" operations, because it will be very suitable for use by mining industry players. This solution is able to support increased productivity through automation, reduce costs by implementing fleet management with IoT (Internet of Things) technology, and can indirectly increase employee safety levels regarding potential work accidents because employees do not need to go to dangerous areas.Feby added that Private Network connectivity has characteristics that many network infrastructures in general do not have. Private Networks have a high level of reliability, speed and security so they are very suitable for applications that require low latency. This technology covers a very wide area and can support data transfer between network areas."As we know, the mining industry is an industry that uses very large amounts of energy, so it will produce higher carbon emissions than other industries. "By implementing green mining with a private network, we invite the mining industry in Indonesia to contribute and support Indonesia's target of reducing carbon emissions by 43.2% in 2030," continued Feby.The XL Axiata Private Network has been used by several mining industries in Indonesia, two of which are the largest mining industries in Indonesia, namely PT Vale Indonesia and PT Pamapersada Nusantara (PAMA).  XLABS explained the discussion regarding "Green Mining with Private Networks" at the Nickel & Battery Summit 2023, last August. In this event, XLABS had the opportunity to introduce products and services as an ICT Partner with trusted integrated services to hundreds of mining industry participants in Indonesia. Apart from green mining solutions via Private Network, several Integrated ICT solutions from XLABS were also offered at the event.Image source: www.emitennews.comSource: www.emitennews.com/XL Axiata Excl Bidik Perusahaan Tambang Lewat Business Solutions

The downstreaming of nickel initiated by PT Trimegah Bangun Persada Tbk (NCKL) or Harita Nickel was able to deliver the economic growth of North Maluku province to the highest nationally.According to data from the Central Statistics Agency (BPS), the record for the highest economic growth in Indonesia was achieved by North Maluku at 23.89% on an annual basis (year-on-year/yoy) in the second quarter of 2023.One of the drivers of North Maluku's economic growth was the rapid performance of the mining and quarrying sector by up to 64% yoy, followed by the processing industry which managed to grow 48.12% yoy.In terms of employment, mining and quarrying and processing are able to contribute more than 50% in accumulation to the GRDP structure of North Maluku as of the second quarter of 2023.On a quarterly basis, the two industries experienced the highest business growth, where mining and quarrying was 23.24%, followed by the processing industry at 15.71%.This brilliant growth certainly did not happen without cause, NCKL's work as a downstream nickel business player helped increase North Maluku's economic growth through its subsidiary PT Trimegah Bangun Persada (TBP) Tbk.TBP has a nickel mine located on Obi Island, South Halmahera, North Maluku Province. Mining operations have been running since 2010, and then continue to carry out transformations in advancing the industry by downstreaming nickel.The company's nickel downstreaming efforts began with the establishment of the first smelter with Rotary Kiln Electric Furnace (RKEF) technology in 2016. Its work continues to produce second quality nickel that can be processed for stainless steel to raw materials for electric vehicle batteries.This project to increase the added value of nickel received a special place from the government which placed the Obi Island Industrial Area as a National Strategic Project in 2020.The following year, Harita Nickel's pioneering spirit returned to advance the nickel industry by establishing a limonite nickel refinery using High Pressure Acid Leach (HPAL) technology. However, at that time the refinery made by Harita Nickel had just produced an intermediate product which was a mixture of nickel and cobalt, Mixed Hydroxide Precipitate (MHP).The refinery with this technology is the first to operate in Indonesia, even the results of nickel refining are claimed to have a lower carbon footprint and have a matte form making it easier to process further.October 2022, Harita Nickel inaugurated the operation of the second RKEF smelter with a production capacity of 780,000 tons of ferronickel per year. A total of 3 nickel ore processing and refining plants are operated by this nation-owned company using two different technologies.Harita Nickel's steps did not stop there. Seven months later, exactly at the end of May 2023 Harita Nickel successfully continued downstream by purifying MHP into the final product, nickel sulfate (NiSO4). The success of nickel sulfate production again makes Harita Nickel a pioneer in Indonesia and is the largest nickel sulfate factory in the world which has a production capacity of up to 240 thousand tons per year. This outstanding record makes Indonesia increasingly considered as a major player in the global electric vehicle battery industry.The latest news is that the third RKEF smelter is in the process of being built and is expected to officially operate in 2025. Not only that, the second HPAL refinery will also be intensified to be operational by the middle of next year.The rapid development of the factory in recent years also does not deny the need for more workers. As of June 30, 2023, the group's permanent and contract employees totaled 9,248, up from 9,168 at the end of March and 7,730 at the end of 2022.Downstreaming also increasingly shows real achievements in the performance of North Maluku nickel exports, during the first six months of this year nickel export growth shot up to 46.69% yoy to USD 833.01 billion. In the same period, volume also increased rapidly from the previous 105.99 billion kilograms to 157.79 kilograms, a jump of 48.86% yoy.The performance of nickel exports has helped support North Maluku's trade balance which remains in surplus at USD 3.23 billion, even though the overall export and import performance of the province is still down 7.67% and 10.27% respectively compared to last May, according to data from BPS.On the other hand, it should also be acknowledged that North Maluku's rapid economic growth is also driven by Central Halmahera Regency, which has the highest growth. In 2022, the district's economic growth will reach 102.31% yoy, far surpassing South Halmahera, where the Harita factory operates, at 21.34% yoy.Comparison of Economic Growth Rate of Districts/Cities in 2022 across North Maluku Province (in %)This is the result of the contribution from Indonesia Weda Bay Industrial Park (IWIP), which serves as an integrated industrial zone for heavy metal processing. It is situated in Lelilef Village, Weda District, Central Halmahera Regency, North Maluku Province.Image source: Harita GroupSource: www.cnbcindonesia.com/KontribusiNCKL Bawa Ekonomi Maluku Utara Jadi Nomor 1 Di RI

The Managing Director of PT Trinitan Green Energy Metals (TGEM) has signed a Head of Agreement (Principles of Agreement), with PT Malomoi Olom Wobok (MOW) as the manager of the Sorong KEK, Thursday (21/7/2022), taking place at Sheraton Grand Gandaria City Hotel, Jakarta.This signing is a follow-up to the plan to build the first Integrated Eco Industrial Park in Indonesia in the Sorong Special Economic Zone (KEK).The signing was carried out by the main leaders of the two companies, namely Widodo Sucipto as Main Director of TGEM and Gabriel Hasahatan Simanjuntak as Main Director of MOW.It was also witnessed by the Regent of Sorong Dr. Johny Kamuru, SH, M.Si, Deputy for Investment Promotion of the Ministry of Investment/BKPM Nurul Ichwan, and Richard Tandiono as Chairman of TGEM.For information, on this occasion partners and suppliers from PT Trinitan Green Energy Metals (TGEM) and PT Malomoi Olom Wobok (MOW), as well as representatives from several related institutions, were also present.Like the National Indonesian Research Agency (BRIN) represented by Mr. Surat Indrijanto, the Secretariat of the National KEK Council, represented by Mr. Bambang, was also present at the HoA signing ceremony for several agencies related to the Sorong Regency Government.This is the news release received by this media crew, Sunday 24 July 2022 from the Business Director of PT MOW Sorong Ir. M. Said Noer, M.Sc. (MC Sorong/rim/toeb Regency)Image source: www.infopublik.idSource: www.infopublik.id/DirutPT TGEM Lakukan Penandatanganan HOA Dengan PT MOW Sorong

Trinitan Green Energy Metals (TGEM) proudly announces its entry into the commercial market for Class 1 nickel with the successful shipment of the Company’s first Mixed Hydroxide Precipitate (MHP) produced using TGEM’s proprietary STAL Technology on 22 September 2023.This milestone signifies the successful completion of the commissioning phase for TGEM’s commercial STAL MHP Production Facilities in Bogor, Indonesia, marking the commencement  of full-scale production. It involves delivering MHP, a critical intermediate material for EV battery production, to a prominent Japanese trading company for the South Korean market.TGEM's STAL Technology, developed over a 15-year span, has been registered for patents in Indonesia, Japan, Canada, the Philippines, and New Caledonia. As of Q3 2023, TGEM has elevated its STAL pilot plant into commercial MHP production facilities.The Bogor-based STAL MHP Production Facilities have annual production capacity of up to  3,200 tons of MHP, which contains an industry-leading average 55% nickel content. This concentration percentage surpasses the current international average accepted range of 30% to 40% nickel content found in MHP.With this successful commercial production capability, TGEM is set to showcase and expand its production capacity through its ongoing nickel processing ecosystem projects. The Company’s  next project, the STAL ONE Ecopark, will be located in Bogor, Indonesia, and will produce up to 10,000 tons of MHP annually. TGEM’s larger-scale project, the IGNITE Ecopark, capable of producing up to 400,000 tons of MHP annually, will be established in Sorong, Southwest Papua, Indonesia. Both projects will not only have STAL MHP production plants but also several supporting facilities, operating together in a closed-loop process that optimizes production flow while ensuring strict environmental compliance.Through these projects, TGEM aims to provide a superior alternative to Chinese-dominated Class 1 nickel production in Indonesia, which currently relies on incumbent HPAL (High Pressure Acid Leach) technology. Importantly, investments in TGEM's projects hail from various countries, including the US, UK, and Japan, with a primary focus on serving South Korea, Japan, Europe, the US, and other Western markets.Compared to HPAL, TGEM’s STAL Technology offers a significantly lower capital investment requirement thanks to its atmospheric pressure-based production requirements and modular design. This design, with each module capable of producing up to 10,000 tons of MHP annually, is particularly well-suited for small- to medium-scale miners across Indonesia who often manage smaller mine sites and have lower production capacities.Aligned with Western ESG (Environmental, Social, and Governance) requirements, particularly regarding environmental concerns, TGEM’s STAL Technology was developed with a commitment to environmental sustainability and data governance. The Company’s ecosystem design results in substantially lower carbon emissions and reduced water usage compared to HPAL, all while providing transparency regarding emissions data for each stage of the STAL process.Through TGEM’s Zero Waste Initiative, which aligns with its commitment to environmental sustainability, the company not only advances its plans to achieve zero tailings but also eliminates the need for tailings management by repurposing the residues resulted from the STAL production process into useful products like Iron Oxide, which can be further processed into  industrial bricks and cement components. These residues resulting are less acidic, simplifying their processing compared to HPAL residues, which often require extensive management due to their high acid concentration.About TGEMWith over 50 years of experience in energy solutions, Trinitan Green Energy Metals (TGEM) is an innovative, R&D and technology-driven provider of metal and mineral processing services. TGEM is determined to create efficiency while delivering sustainability and social responsibility to Indonesian communities and the Company’s customers around the globe. To learn more about Trinitan Green Energy Metals go to https://tgem.group/Image source: Trinitan Green Energy MetalsSource: Trinitan Green Energy Metals

PT Bayan Resources Tbk (BYAN) revealed that the world coal price trend will continue to show a positive trend amidst the current surge in coal prices, especially the price of ICE Newcastle coal, the October contract closed at USD 160.4 per tons in trading Thursday (21/9/2023).BYAN Director, Alexander Ery Wibowo said that coal prices would be driven by economic growth in China and India as countries with the highest coal consumption in the world."Coal prices are mainly determined by economic growth in China and India. So I think the positive trend in future coal prices will remain good for the coal industry," explained Alexander to CNBC Indonesia in the Mining Zone program, quoted Friday (22/9/2023).The recent high coal prices are actually the result of China's high demand and production of coal. Moreover, China has also placed restrictions on several coal mines due to security issues. "So the increase in production in China itself is not growing rapidly compared to the increase in demand," he explained.Apart from that, the demand for coal in China is due to an increase in industrial output of approximately 4.5% in China. The latest news from Chinese coal is related to the construction of a coal power plant which has the capacity for two-thirds of the world's electricity.Turning to other Asian countries, India, as the second largest coal user, consistently experiences an increase in coal use every year. India is adding 25-30 Giga Watt (GW) of thermal power plants in addition to the 49 GW of coal-based units under construction.Apart from that, the sentiment of high demand ahead of various festivals in September also influenced India's high demand. The increase in demand for Asian coal can also be seen from the world's largest coal exporter.CoalMint noted that Indonesian coal experienced a surge in demand, amidst limited ship cargo.High demand will certainly increase production and sales from Indonesia. Quoting MODI, Ministry of Energy and Mineral Resources, as of today (19/9/2023), Indonesia's coal production has reached 529.05 million tonnes or 76.18% of this year's coal production target of 694.5 million tonnes.Meanwhile, coal sales from Indonesia have reached 434.37 million tons or reached 62.54% of the sales target in 2023.Image Source: CNBC Indonesia TVSource: www.cnbcindonesia.com/Bayan OptimistisTren Harga Batu Bara Masih Positif

Used in power cables and electric vehicles (EVs), copper is a vital part of the global shift to renewables. The world's second-biggest copper mine is in Grasberg, Papua, and plays a significant role in Indonesia’s energy transition and quest to develop the domestic EV industry.PT Freeport Indonesia president director Tony Wenas spoke to The Jakarta Post's Mark Lempp and Aditya Hadi in Jakarta on Sept. 4 and discussed the extension of the company’s special mining license (IUPK) and its objection to the revised rules on export duties. Tony, who is also vice chairman of investment at the Indonesian Chamber of Commerce and Industry (Kadin), also spoke about the importance of regulatory stability in view of the 2024 elections.Question: How do you assess international investors' appetite for Indonesia, and has the Job Creation Law helped?Answer: They look at several factors, from the inflation rate to population numbers, to political stability and [overall] safety. Indonesia [scores well in] all of those factors.With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.The macroeconomic numbers are promising, with political stability for the past nine years. President Jokowi's administration is much more stable compared to previous [administrations], so that has created the appetite for investors to come in.The Job Creation Law [has made] the country more attractive, but investors are waiting for its implementation, as there are so many regulations that are still in the pipeline [waiting] to be enacted. The devil is in the details.Personally, I think we need consistency and the continuation of what has already been done. I'm not saying that I’m against change, but [change should be] for things that need to be fixed. As for the good things that have been [achieved], let's continue [them].Speaking of continuity, what is the progress on Freeport's IUPK extension beyond 2041?That matter is still under discussion. There is a discussion with the government on several topics, such as smelter construction in Papua and additional shares.We believe that there is a very big resource potential beneath the existing mine, around 3 billion tonnes. But we have to do detailed exploration, and I cannot justify my shareholders spending money on this without a guarantee that the IUPK will be extended.How is construction progressing on your new smelter in Gresik?Progress until the end of July is around 75 percent. The plan is to complete the physical construction by the end of this year. Then, we will conduct pre-commissioning and commissioning processes to start operating the smelter in May next year.The newly built smelter will have a total capacity of 1.7 million tonnes of copper concentrate a year. But we are also expanding the capacity of our existing smelter in Gresik from 1 million to 1.3 million tonnes. That process will also be ready by the end of this year.Recently, you sent a letter of objection to the government about the revised export duty policy. What was behind that?Based on the IUPK that was signed in 2018, and that was issued after a lengthy negotiation, there is a statement on the export duty that refers to a Finance Ministry regulation. In that regulation, the government said that if the smelter progress is above 50 percent, the export duty will be zero.On top of that, the IUPK also mentions that the government will not impose any additional levies or taxes. That's why, while we [are continuing to] pay the export duty, we [are doing so as] "payment under protest".But that's the normal course of business. If the government does not accept our objection, then we can appeal to the tax court. It's not like Freeport is suing the government.But you could actually sue, right?Yes, we could. But we are talking to the government first. After that, we don't know.We want to find the best solution for the benefit of the country and the continuation of the operation to create more benefits for the country. But you know, legal certainty is very important, because it will affect the structure or the perception of global investors.Do you think the government will push you toward more downstream efforts after the smelter is built?The law basically says that we have to process copper and refine it domestically. We're in the mining business, and the most downstream product is metal. The next step is the manufacturing sector.So building a smelter is not something you would actually choose to do?We do it, because we have to do it. If we could choose, we'd rather export copper concentrate, because it's already 95 percent [of the value].But we have to consider as well that the government plans to develop the EV ecosystem, and copper will play an important role there.How is the demand for copper nowadays?People around the world are now building renewable energy plants, including Indonesia. That will require much more copper, as it is used to transport electricity.So, for example, a 1-megawatt [MW] wind farm will require 1.5 tonnes of copper and a 1 MW solar [power plant] will require something like 4 tonnes of copper. Meanwhile, EVs will require four times more copper than internal combustion engine vehicles. So the demand is there.Do you feel any effect from slower Chinese growth?A slowdown in China will reduce demand, of course, but in other parts of the world [growth] will keep increasing.It's not like we're selling to China, for example, 40 percent of our product. It's probably more like 14 percent, and then Japan is 10 percent. Sometimes China goes down and Japan goes up.I mean, the market is everywhere.Image source: PT Freeport IndonesiaSource: www.thejakartapost.com/Executive Column Freeport Seeks Legal Certainty To Continue Operations

PT Indika Energy Tbk (INDY) released 100% share ownership in the coal mining company PT Multi Tambangjaya Utama (MUTU), PT Petrindo Jaya Kreasi Tbk (CUAN) for USD 218 million or equivalent to IDR 3.35 trillion. This step shows Indika's commitment to break away from dependence on the coal business and develop a green or sustainable business."The sale of share ownership in MUTU is part of our strategy to reduce exposure in the coal business and increase our non-coal investment portfolio. "Indika Energy targets to reach 50% of revenue from the non-coal sector by 2025," said Head of Corporate Communications Indika Energy Ricky Fernando to Investor Daily in Jakarta, Monday (25/9/2023).He emphasized that Indika Energy will continue to review its business portfolio and focus on diversifying in the non-coal sector. "We will continue to develop our business in line with our Environmental, Social and Governance (ESG) commitments, including in the new and renewable energy sector and electric vehicles," said Ricky.Indika Energy Corporate Secretary Adi Pramono, in a disclosure of information to the Indonesian Stock Exchange, revealed that on September 22 2023, Indika Energy, through PT Indika Indonesia Resources (IIR) and Indika Capital Investment Pte Ltd as sellers, had signed a conditional sale and purchase agreement (CSPA) with PT Petrindo Jaya Kreasi Tbk (CUAN), as buyer. The agreement is related to the planned sale of all shares owned by IIR and ICI in PT Multi Tambangjaya Utama (MUTU) to Petrindo Jaya Kreasi.Based on the CSPA, the sellers intend to sell a total of 2,263,030,000 shares representing 100% of Indika Energy's indirect ownership in MUTU to Petrindo Jaya Kreasi (CUAN). And ICI intends to transfer all its rights and obligations based on the Marketing Services Agreement dated 25 June 2012 as amended by Amendment No. 1 for the Marketing Services Agreement dated January 5 2018 to Petrindo Jaya Kreasi (transfer of marketing rights together with the sale of shares).Business DiversificationThe agreed value for the proposed transaction is a total value of USD 218 million (around IDR 3.35 trillion). Adi Pramono stated that the completion of this transaction plan is subject to the fulfillment of several preliminary requirements as regulated in the CSPA, including approval from the Minister of Energy and Mineral Resources of the Republic of Indonesia."The company believes that the transaction plan is carried out in accordance with the company's diversification business strategy and to ensure that the company focuses on implementing sustainable business activities," said Adi Pramono.After the transaction plan was completed, said Adi, MUTU would no longer be a subsidiary of Indika Energy and would not be consolidated in the company's financial statements. Indika Energy believes that the transaction plan is carried out in accordance with the company's diversification business strategy and to ensure that the company focuses on implementing sustainable business activities."The planned transaction will not have an impact on the company's operational activities, law, financial condition or business continuity," explained Adi Pramono.MUTU is a thermal coal and bituminous metallurgical coal mining company located in Central Kalimantan, has a 3rd generation PKP2B (coal mining work contract agreement) with a concession area of ​​24,970 hectares. Since starting production in 2016, MUTU has shown extraordinary growth and achieved record profits in 2022.Improve PerformanceFor Petrindo Jaya Kreasi, the acquisition of share ownership in MUTU is a fundamental component of the company's long-term strategy which aims to improve operational performance to be more efficient and effective, by integrating operations and strengthening the company's business portfolio in the fields of high-calorie thermal coal and metallurgical coal.Petrindo Director Daniel J Laurente said that Petrindo's full ownership of MUTU would not only increase Petrindo's annual production, but also strengthen the company's operations in Central Kalimantan where most of Petrindo's assets are located."This confirms our position as a producer of high quality thermal coal, providing good efficiency, and providing superior efficiency and competitive advantages to our customers," he said.Previously, also acquired 85% of the shares in PT Silika Salut Jaya (SSJ), which is a silica sand mineral mining company. The acquisition of SSJ was carried out through CUAN's subsidiary, namely PT Prima Mineral Investindo (PMI).President Director and Secretary of Petrindo Jaya Kreasi (CUAN) Michael said that the takeover of the company's assets was important and PMI acquired it from shareholders who were not affiliated with the company. "After the transaction is carried out, PMI will become the new controlling shareholder in SSJ," said Michael.SSJ is a mining company with a working area of ​​461.49 hectares in Kutai Kartanegara, East Kalimantan. Currently, SSJ is in the final process of obtaining approval from the Minister of Energy and Mineral Resources for the issuance of an Exploration Mining Business Permit (IUP Exploration) for Silica sand.This, continued Michael, is in accordance with the initial aim of PMI being formed, namely to become a subsidiary of Petrindo Jaya Kreasi which acts as a holding company for companies engaged in mining other minerals such as silica sand or quartz.Michael confirmed that the acquisition which will take place on September 11 2023 will have no impact on the company's activities. "These material facts have no impact on operational activities, law, or the financial condition or continuity of the company's business," added Michael.Image source: PerseroanSource: www.investor.id/Fokus Bisnis Hijau Indika Indy Jual Tambang Batu Bara Rp 33 Triliun