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Indika acquires Perkasa Investama Mineral in turn away from coal
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President director of PT Illectra Motor Group, Purbaja Pantja (second left), and Indika Energy president director Arsjad Rasjid (center) attend the Alva One launch ceremony on Aug. 11. (JP/Divya Karyza)
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ublicly listed coal miner PT Indika Energy, through its subsidiary PT Indika Mineral Investindo, has completed a US$5 million acquisition of bauxite miner PT Perkasa Investama Mineral in a move to diversify its business away from coal.
Indika now controls 100 percent of the company.
Indika Energy corporate secretary Adi Pramono noted in a disclosure statement on Wednesday that Perkasa Investama Mineral was engaged in management consulting as well as the metal and metal ore trading business.
“The acquisition was part of [Indika Energy’s] attempt to diversify its business to non-coal sectors, especially the bauxite mineral mining and processing business,” he said in the disclosure.
Read also: Indika, Foxconn sign JV agreement on EV factory
Perkasa Investama Mineral also has two subsidiary companies, namely bauxite ore miner PT Mekko Metal Mining and non-ferrous metal smelting company PT Perkasa Alumina Indonesia.
Non-ferrous metals are every metal and alloy that does not contain iron. Metals in this category include aluminum, copper and nickel.
Indonesia holds one of the world’s largest reserves of bauxite, the ore used to make aluminum. Aluminum is used in the manufacturing of electric vehicles (EVs) and also in creating necessary charging infrastructure.
The nation possesses approximately 1.2 billion tonnes, or 4 percent, of the world’s bauxite reserves of 30.39 billion tonnes, according to a 2020 report by the Energy and Mineral Resources Ministry.
Read also: Energy transition to boost demand for metals, says Luhut
Indika Energy has announced a goal of introducing renewable energy and developing an EV ecosystem in Indonesia.
Electric four-wheeled vehicle company PT Mitra Motor Group (MMG), an Indika Energy subsidiary, created a joint venture with EV component producer Foxteq Singapore on Sept. 22.
Focusing on manufacturing commercial electric cars and batteries, the venture was followed by an investment of Rp 39 billion ($2.5 million) from MMG, equivalent to 60 percent of the paid-up capital.
Previously, the company’s EV manufacturing arm PT Ilectra Motor Group (IMG) launched the indigenous, fully electric Alva One Motorcycle, which will be manufactured in a factory in Cikarang, West Java.
Aiming to develop the two-wheeler brand and its supporting ecosystem, IMG raised a total of $7.5 million in May from Alpha JWC Ventures and Horizon Ventures, equal to 21.4 percent of the company's shares, while Indika Energy added another $7.5 million.
