Indonesian energy company Indika Energy confirmed it is selling its controlling interest in its coal mining business, Petrosea, for A$146.6 million, so it may use the raised capital to expand a new business endeavour.

The buyer is privately held Caraka Reksa Optima. The two first signed a share sale and purchase agreement on 25 February but made the news official this week.

CEO and Deputy President Azis Armand said Indika is working to diversify its portfolio outside of energy and mining, though not much further detail was provided into its plans.

“The proceeds from the sale of Petrosea will be used to strengthen the company’s finances, as well as fund the company’s business diversification that prioritises sustainability aspects to maximise shareholder value,” Azis said on 8 March.

In January, the company teamed with Taiwan-based Hon Hai Precision Industry along with Indonesia state-owned battery maker Indonesia Battery Corporation and the country’s electric bike maker Gogoro Taiwan to develop an electric vehicles ecosystem in the country.

The sale of Petrosea, which performs contract mining, especially for the coal sector, was already part of its divestment plan, Indika said this week. Its mission as a company is to receive half of its revenue from non-coal businesses and become carbon-neutral by 2050.

Pending the satisfaction of preliminary conditions outlined in the agreement, the sale transaction should close by the end of May.

Sources: Indika Energy and Djakarta Mining Club