Jakarta, TAMBANG,- Investment company with a diversified business portfolio, PT Indika Energy Tbk. (The company) conveyed its performance up to the third quarter of this year. Amid the challenges of declining global commodity prices, the Company demonstrated strategic discipline and operational efficiency. The company recorded revenues of US$ 1,443.0 million and profits attributable to owners of the parent entity of US$ 0.5 million in the nine month period this year.
In the future, Indika Energy will continue to develop its business portfolio and diversify its business in the non-coal sector, as well as focus on realizing its Environmental, Social and Governance (ESG) commitment towards being carbon neutral by 2050.
In terms of financial performance, throughout the three quarters the Company recorded a decline in revenue of 19.1% to US$ 1,443.0 million. The decrease in Revenue was mainly due to lower contributions from Kideco Jaya Agung (Kideco) which recorded a decline in Revenue of 18.0% to US$ 1,152.4 million. This happened because the average selling price decreased.
As is known, up to the third quarter, Kideco sold 22.2 million tons of coal with the average selling price of coal falling 14.7% to US$ 49.4 per ton of coal. Even though in the same period last year the average price was US$ 57.9 per ton. Kideco sold 9.6 million tons of coal or 43% of its sales volume to meet domestic needs (DMO). This amount exceeds the DMO requirement of 25% set by the Government and is a form of Indika Energy’s real support to the country, in line with the company’s goals, namely Energizing Indonesia for a Sustainable Future.
The decline in the Company’s revenue was also contributed by Indika Indonesia Resources, namely by 66.0% to US$ 28.7 million in this period from US$ 138.9 million in the same period in the previous year. This is due to decreased demand in the export market. The remaining income comes mainly from non-coal trade – mostly bauxite from Mekko.
Meanwhile, Tripatra’s revenue increased 12.0% to US$ 176.2 million in 9M 2025, mainly driven by the Posco project (US$ 21.9 million), the Akasia Bagus project (US$ 28.1 million), the Pupuk Kaltim ammonia plant (US$ 19.1 million), and the APA Geng North project (US$ 39.6 million).
Mandiri Utama Interport (IMU) also recorded an increase in revenue of 9.2% to US$ 93.1 million. This increase was contributed by Cotrans amounting to US$ 53.8 million, KGTE (fuel storage) amounting to US$ 33.5 million, and the remainder came from the Interport business area (IBP) and ILSS.
Indika Energy succeeded in recording significant cost efficiencies in 9M 2025. Cost of Goods Sold (COGS) decreased by 17.5% to US$ 1,249.2 million in 9M 2025 compared to US$ 1,514.8 million in the same period in 2024. Kideco’s cash costs, including royalties, fell 13.0% to US$ 44.0 per ton during the nine months compared to US$ 50.6 per ton in the same period last year. . This occurred mainly due to the decline in coal prices which resulted in lower royalty expenses, and a lower strip ratio, namely 5.2 times in the first nine years compared to 5.7 times in the same period last year. This resulted in a decrease in ex-royalty cash costs of 6.3% to US$ 34.1/ton during the three quarters of this year. This decrease was partially offset by an increase in fuel costs due to the implementation of B40 fuel from January 2025.
The Company recorded Gross Profit of US$ 193.7 million, or a decrease of 28.1% compared to US$ 269.4 million in 9M 2024. Gross Profit Margin was at 13.4% in 9M 2025, compared to 15.1% in the same period the previous year.
Selling, General and Administrative Expenses decreased 15.3% to US$ 112.8 million in this period compared to US$ 133.1 million in the same period last year. This is mainly due to a decrease in Non-Tax State Revenue (PNBP) related to Kideco, a decrease in marketing costs in line with a decrease in Kideco’s income, the exclusion of MUTU operational costs since divestment in February 2024, and professional costs.
The Company’s Financial Expenses showed a significant decrease of 25.6% to US$ 53.4 million, which was mainly due to a decrease in average total debt and a decrease in average debt costs. As a result, the Company posted a profit attributable to owners of the parent entity of US$ 0.5 million in the third quarter compared to US$ 34.4 million in the same period the previous year.
Throughout the past nine months, the company invested capital expenditure of US$ 82.1 million. Of this amount, 93.9% or US$ 77.0 million was allocated to non-coal businesses, which confirms the Company’s focus on diversification, including Indika Mineral Investindo (especially for the Awak Mas project) amounting to US$ 53.3 million. Then also an environmentally friendly business amounting to US$ 7.5 million. For the coal business, the Company invested US$ 5.0 million in capital expenditure for Kideco.
“The performance of the first nine months of this year reflects our discipline in implementing our diversification strategy. The dominant portion of capital expenditure in the non-coal portfolio (almost 94%) confirms our commitment to strengthening the foundations of a more resilient and sustainable future business,” stressed Azis Armand, President Director and Group CEO of Indika Energy.
On July 31 2025, PT. Batu Ampar Container Terminal, a joint venture company of Indika Energy through PT Interport Mandiri Utama with ICTSI Middle East DMCC, together with PT Batam Terminal Petikemas, have signed an operational cooperation agreement as strategic partners for 30 years to operate the Batu Ampar Container Terminal.
Source: www.tambang.co.id
