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Pertamina fuel station (credit: Antara)

Indika Energy unit to develop fuel storage in Balikpapan, East Kalimantan

JAKARTA (RambuEnergy.com) – PT Indika Energy Tbk (IDX:INDY), a diversified energy company, has unveiled its plan to develop a fuel storage in Balikpapan, East Kalimantan with an estimated investment of US$98 million.

The project will be developed by the company’s subsidiary PT Kariangau Gapura Terminal Energy.

President Director and CEO of Indika Energy Azis Armand was quoted by Kontan daily that the company has undertaken preparatory works since early this year. Indika expects the project to be completed in 2020.

In addition, Indika Energy is also planning to develop  jetty, nearby the fuel storage tanks.

Early this year, Kariangau has signed contract with PT ExxonMobil Lubricants Indonesia on the utilization of the storage facilities for 20 years with an option to extend 10 years.

The storage tanks will have capacity of around 100 million litters of fuel.

Early this year, Indika Energy has signed a loan facility valued at US$75 million due in 2023. The interest rate of the loan facility is set based on LIBOR+1.85% per annum. The funds will be used to develop a jetty and fuel storage.

The creditors were PT Bank Mandiri Tbk (IDX:BMRI), MUFG Bank Ltd and ICIC Bank Ltd. MUFG also acting as agent.

Indika has said it sets total capital expenditure (capex) of US$315 million for this year.

Shareholders of Indika Energy are as follows:

  • PT Indika Inti Investindo : 37.79%
  • PT Teladan Resources : 30.65%
  • Eddy Junaedy Danu: 1.58%
  • Agus Lasmono: 0.19%
  • Indra Cahya Basuki: 0.03%
  • M. Arsjad Rasjid P.M. : 0.02%
  • Azis Arman: 0.02%
  • Richard Bruce Ness: 0.02%
  • PT Indika Mitra Holdiko: 0.00%
  • Public; 29.69%

(*)

Edited by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

 

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