JakartaPost-Aug 11, 2025
Indonesia’s coal giants are accelerating their push into non-coal ventures as global demand falters under the twin pressures of a renewable energy boom and persistent oversupply, driving prices down. Yet uncertainty clouds the transition, with questions over how swiftly and successfully they can pivot from fossil fuels amid financial risks and lukewarm policy support. Indika Energy, one of the country’s largest coal mining firms, reported a 28.8 percent increase in non-coal revenue in the first half of 2025, rising from 12 to 19 percent of total earnings. The company aims to derive half of its revenue from non-coal sectors by 2028, including electric vehicles, solar energy and gold mining. However, these new ventures remain in the early stages. “Our non-coal businesses are still in the development stage and will take time to generate significant cash flow,” Ricky Fernando, Indika Energy’s head of corporate communications, told The Jakarta Post on Wednesday. “Stronger regulations and incentives are also necessary to fully support renewable energy growth.” Indika allocated 95.4 percent of its capital expenditure, or US$51.8 million, in the first half of 2025 to non-coal segments. Its investments include the Awak Mas gold project, solar energy through the joint venture PT Empat Mitra Indika Tenaga Surya (EMITS) and electric vehicles under the brands ALVA, KALISTA and INVI. As part of this shift, the company has divested coal assets, including PT Multi Tambangjaya Utama (MUTU), PT Mitrabahtera Segara Sejati Tbk (MBSS) and Petrosea, signaling a gradual move toward low-carbon business segments. “We also prioritize efficiency and risk mitigation by cutting costs and strengthening organizational capacity to support new ventures,” Fernando added. Indonesia plays a pivotal role in this shifting landscape. As the world’s largest seaborne coal exporter, it accounted for about 38 percent of global trade in early 2024, according to The Coal Hub. With demand expected to weaken and trade volumes to shrink, Indonesian coal producers will soon have to confront tighter markets. Energy company PT TBS Energi Utama, for instance, reported operating revenue of $172.2 million in the first half of the year, down 31 percent from $248.68 million in the same period last year. The drop was largely driven by a sharp decline in coal sales volume, from 1.7 million tons to 700,000 tons, and a fall in the average selling price from $83 per ton to $52.90 per ton, in line with the global price slump. Read more at:
