VALUATION OF PT INDIKA ENERGY TBK (INDY) AFTER ENERGY TRANSITION STRATEGY
Coal industry nowadays face the big issue about environmental. Coal is known as the dirty energy sources. Many non-profit organization with ESG concern initiated the movement to force government to apply energy transition movement. Nowadays, government realize to apply energy transition as soo...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/79843 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Coal industry nowadays face the big issue about environmental. Coal is known as
the dirty energy sources. Many non-profit organization with ESG concern initiated
the movement to force government to apply energy transition movement.
Nowadays, government realize to apply energy transition as soon as possible. This
drives government to formulate the new regulation related to energy transition
vision. In global, many governments apply the regulation to forces companies and
industries to apply energy transition. It also happens in Indonesia. Indonesia’s
government has commitment to comply the Net Zero Emissions (NZE) target. In
order to achieve this target, Indonesia’s government formulate the newest
regulation PP No. 112/2022. This regulation forces the early retirement of coalbased power plant. This regulation will decrease the coal demand in the future.
Finally, this regulation forces coal companies in Indonesia to apply the energy
transition movement. Many coal companies in Indonesia forced to change their
business strategy. It is also happened in PT Indika Energy Tbk (INDY).
PT Indika Energy Tbk apply some strategies to reduce this legal risk, such as by
investing in non-coal industries, decarbonizing the operations, and divesting from
high-carbon industries. One of the interesting corporate action conducted by INDY
is the divestment strategies that applied for some last years. The newest divestment
conducted by INDY is the divestment of PT Multi Tambangjaya Utama (MUTU).
MUTU has contributed to around 6 until 8% total revenue of PT Indika Energy Tbk.
Also, MUTU coal quality is considered as the high-grade coal with high caloric
value. This corporate action catch many investor attention.
In this research, PT Indika Energy Tbk valuation will be revalued and compared
between before MUTU Divestment and after MUTU Divestment. Since PT Multi
Tambangjaya Utama is not the public listed company, firstly, there is need to
estimate the financial statements. The valuation used in this research is by using
Free Cash Flow to Equity (FCFE) method. FCFE calculation will be used for PT
Indika Energy Tbk before MUTU divestment and after MUTU divestment. Then,
the value between before MUTU divestment and after MUTU divestment compared
each other. Beside of that, in this research also cover financial ratio and relative
valuation also compared to other coal companies in Indonesia. |
|---|