Jakarta. Astrindo Nusantara Infrastruktu (BIPI) plans to divest nearly all shares in its coal mining subsidiary Sintesa Bara Gemilang (SBG) as part of efforts to optimize its business portfolio, strengthen its capital structure, and reduce financial risks.

The company will sell 4,995 shares, representing a 99.9% stake in SBG, to non-affiliated party Indo Panca Borneo (IPB). The transaction is valued at Rp 1.79 trillion ($100 million).

BIPI and IPB signed a conditional share sale and purchase agreement on May 21, with the transaction targeted for completion by the end of this year.

The proposed divestment will be discussed during an Extraordinary General Meeting of Shareholders (EGMS) scheduled for June 30.

“The company believes the proposed transaction will provide a positive impact on the company’s financial condition and support future business development,” BIPI management said in a disclosure to the Indonesia Stock Exchange on Monday.

The transaction qualifies as a material transaction under Financial Services Authority Regulation (POJK) No. 17/2020, as SBG’s assets and revenue contribute more than 20% to the company’s consolidated figures.

The divestment plan comes as Astrindo reported weaker financial performance in 2025. Revenue fell to $235.1 million from $563 million in 2024, while net profit declined sharply to $1.5 million from $10.4 million, based on the company’s latest financial report.

Gross profit also dropped to $34.6 million from $111.3 million a year earlier. Meanwhile, finance costs remained high at $69.1 million in 2025, although lower than the $84.6 million recorded in the previous year.

Astrindo’s cash and cash equivalents stood at around $30.9 million at the end of 2025, down from $69.3 million a year earlier.

The company has yet to disclose the detailed use of proceeds from the planned divestment.