Indika Energy Owned By Conglomerate Agus Lasmono Sudwikatmono Says It Needs IDR 3.5 Trillion To Develop Solar Business

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Indika Energy Tbk (Indika Energy) through its subsidiary, Empat Mitra Indika Solar Power (EMITS) will continue to develop the potential of renewable energy, especially solar power in Indonesia. EMITS targets to get installation contracts of 80 - 100 MWp in 2022 and 500 MWp in 2025.

Yovie Priadi, President Director and CEO of EMITS said that every year the company is estimated to need a capital expenditure of 50 million US dollars for business development costs.

Furthermore, Yovie said, although EMITS provides various business schemes in its services, the most widely used scheme currently is rental, therefore, until 2025, the total capex is estimated at US$250 million or around Rp.3.5 trillion.

EMITS is an integrated solar solution provider company in Indonesia. EMITS was established in March 2021 through a partnership with Fourth Partner Energy.

"To achieve this target, EMITS targets the industrial, commercial and utility segments. We are working with various private and government parties, including PLN," said Yovie, Tuesday, March 5.

To date, EMITS has expanded its portfolio through the installation of solar photovoltaic (PV), sustainable port development (green port), to the construction of hybrid solar PV combined solar PV with the largest battery capacity in Indonesia.

As for the Fourth Partner Energy, Indonesia as the largest country in Southeast Asia has great potential in the development of solar power.

"In India itself the development of solar power has been a national program for more than a decade, we will continue to share knowledge and experience through EMITS to be able to further develop solar power in Indonesia and intensify the decarbonization steps taken by Indika Energy Group," said Vivek Subramanian, CoFounder and Executive Director of Fourth Partner Energy.

So far, EMITS has partnered with several leading companies in Indonesia that run businesses in plantations, pulp and paper, power plants, mining, wood products, office buildings, ports (green ports).

In March 2022, EMITS signed an agreement with PT Mangole Timber Producer which is part of the Sampoerna Kayoe Group to build a ground-mounted solar power plant with a capacity of 12 MWp and a 3 MWh battery system in the Sampoerna Kayoe Group operational area located in Mangole, North Maluku. Currently, the battery capacity is the largest in Indonesia.

The establishment of EMITS is part of efforts to increase 50 percent of revenues from the non-coal sector by 2025 and achieve carbon neutrality by 2050.