Indika enters coal transportation business

IDX-listed energy firm PT Indika Energy Tbk. will enter the country?s growing coal transportation business in cooperation with national and South Korean companies.

Indika?s vice president for investors relations, Retina Rosabai, said in Jakarta on Tuesday that the company?s subsidiary PT Tripatra Engineers and Contractors in cooperation with national firm PT Muji Inti Utama and South Korean company Samtan Co. Ltd had established a joint venture to run the coal transportation business.

Retina said that the joint venture, PT Sea Bridge Shipping would, in the initial stage, only handle the transportation of coal produced by Indika Energy. ?Tripatra provides cash of about US$920,000 for the joint venture. For this, the company has the right to own a 46 percent stake in the joint venture,? she added.

Established in 2002, Indika is a holding company with two major investment assets - a 46% stake in East Kalimantan coal miner PT Kideco Jaya Agung and a 100% stake in Tripatra. (*)