COMPANY ANALYSIS
Indika Energy was established in
2000, the company operates in mining and energy sector. The company did its
Initial Public Offering in 2008. The company has three business lines, it
comprises energy resources, energy service and energy infrastructure.
It has the third biggest coal
mining in indonesia, Kideco Jaya Agung. 63.47 % of indika energy’s shares is
owned by Indika Mitra Energy. The ultimate shareholders of the company are mr.
Agus Lasmono and Wiwoho Basuki Tjokronegoro. Mr. Agus is son of mr. Sudwikatmono,
cousin of mr. Soeharto, former second indonesia president.
The biggest parts of company
revenue are contributed by Mitra Bahtera Segara Sejati (MBSS), Trpatra group
and Petrosea. Tripatra is the contractor company in oil mining at Cepu, central
java which is owned by Exxon mobile cepu Ltd. The biggest part of revenue was
from Exxon mobile cepu, its strategic partner in energy service business line.
To face the downturn in coal
mining business lines, the company conducted several strategies to anticipate
its downturn. It stopped projects that related with coal, it was reducing
operating costs, it looks for government infrastructure project and it also
targeted 35,000 MW new power generation project of government. In power plant
industry, it established Cirebon Energy Prasarana in 2015 to capture energy
demand in Java Island.
Its subsidiary, Mitrabahtera
segara sejati (MBSS) was suffered due to the decline in coal demand; it
operates in one-stop coal transportation and logistics. It operates a floating
crane which serves coal handling management service from port, barging, river
and sea transportation to offshore vessel.
In 2015, the revenue declined 1.1
% compared to its revenue in 2014. The revenue decrease in its subsidiaries,
petrosea and MBSS were as the factor that decreased its revenue. Other
segments, Tri patra recorded higher revenue in 2015 than revenue in 2014. Its
revenue increased more than 13.7 % which was dominated from Exxon mobile cepu
Ltd. Coal trading segment was also attaining significant increase in its
revenue in 2015.
The increase of ST loan in 2015
was used to finance working capital of Tripatra, coal trading business unit and
petrosea.
In 2015, the government
expenditure increased 5.4 %, it was higher than government expenditure in 2014
which its increase was 2.0 %. Along 2014-15,the priority program of the
government was infrastructure development such as toll road, power generation
and etc. The business sector that was related with the government project
experienced better growth.
