INDY 2015

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.