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Mining giant Indika to cut coal income to 50% with net zero in mind
The company plans to diversify into logistics, metal mining, forest plantations and renewable energy, among others.
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Publicly listed coal miner Indika Energy president director Arsjad Rasjid (third right) talk to journalists after attending an annual shareholders meeting on April 26. (JP/Stefanno Reinard Sulaiman)
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ublicly listed PT Indika Energy, one of Indonesia’s top coal miners by output through subsidiary PT Kideco Jaya Agung, plans to cut its coal income to 50 percent by 2025 amid growing pressures on the global coal industry.
The company, which earned 70 percent of its total revenue last year from coal sales, plans to diversify into, among other sectors, logistics, metal mining, forest plantations and renewable energy, which includes an ambitious plan to operate nearly 1,000 megawatts peak (MWp) of solar photovoltaics (PVs) by 2025.
In comparison, Indonesia’s installed solar power capacity stood at 153.5 MWp in 2020, according to Energy and Mineral Resources Ministry data.
“We will also make a commitment on net-zero emissions in the future because this is about how to balance [our business]. This is also why we are going into nature-based businesses; it’s about how we can get carbon credits,” Indika president director Arsjad Rasjid told The Jakarta Post in an interview on April 7.
He declined to specify a date for the net-zero commitment.
Indika Energy will potentially add to a list of multinational mining companies, including giants like London-based Rio Tinto and Melbourne-based BHP, that have announced their commitment to achieving net-zero emissions.
Rio Tinto and BHP, whose businesses are mainly in metal mining, aim to reach net zero by 2050. The latter saw coal contribute just 14.5 percent to its total US$42.93 billion revenue last year, according to its 2020 financial report.
