PT Indika Energy Tbk (INDY) has redefined its future growth strategy to diversify its business to non-coal.

"In the medium term, the company targets 50% of its revenue to come from non-coal businesses," wrote management in the Indika Energy 2020 annual report quoted on Monday (12/4).

To meet this target, the company has initiated several non-coal investments such as fuel storage, gold mining, and renewable energy.

As an embodiment, on March 3, 2021, the company has formed a joint venture with Fourth Partner Energy, an Indian solar panel company.

The company is called PT Empat Mitra Indika Tenaga Surya (EMITS) and will develop a renewable energy business, particularly solar power in Indonesia.

This year, the company has set a coal production target of 35.1 million tons. The contribution came from business entities, namely PT Kideco Agung Jaya with around 34 million tons and PT Multi Tambang Utama Jaya with about 1.4 million tons.

Kideco's coal sales are dominated by the Chinese, domestic and Indian markets.

"Apart from growing demand from the domestic market, we are also seeing growth in demand from Southeast Asian countries such as Vietnam, the Philippines and Cambodia. The chart below shows Kideco's Coal Sales in 2020 based on the destination country," he emphasized.