Jakarta. State-run mining industry holding MIND ID recently announced on the weekend that it had posted Rp 22 trillion or about $1.43 billion in net profit in 2022.

This marks a huge jump from the group’s net profit in the previous year which totaled Rp 14.33 trillion. 

MIND ID encompasses state-run mining firms Bukit Asam (PTBA), Timah (TINS), Aneka Tambang (ANTM), Vale Indonesia (INCO), and Freeport Indonesia. The group’s revenue skyrocketed from Rp 93.75 trillion in 2021 to Rp 120 trillion last year. 

In 2023, MIND ID is aiming for a Rp 30 trillion net profit.

“President Joko Widodo and State-Owned Enterprise Minister Erick Thohir have assigned us to make a downstream industry roadmap, including one on the electric vehicle industry. That is why we are refocusing our capital expenditure in that sector. We had a bottom line of Rp 22 trillion [net profit] last year,” MIND ID corporate secretary Heri Yusuf said in a statement.

MIND ID has designed a roadmap for the development of homegrown battery electric vehicles.

In 2022-2023, the group will focus on establishing a joint venture with battery giants China’s CATL and South Korea’s LG Energy Solution. In 2023-2024, the group via the Indonesia Battery Corporation (IBC) will start producing its first batteries for two-wheelers. This is the reason why the IBC acquired the electric motorbike manufacturer Gesits.

Ferdy Hasiman, a researcher at Alpha Research Database, said MIND ID had been doing well over the past years.

“The [members] mesh quite well. With a state-owned mining holding, we are optimistic. Hopefully, we can rely on our state-owned mining firms to give our state revenue a boost, and become a pioneer in the country’s mining industry,” Ferdy said over the weekend.

According to Ferdy, MIND ID should also play a more active role in helping Indonesia reach a net zero emission. Mining commodities are key to the transition to clean energy. For instance, nickel is a mainstay for EV battery production. Coal is also pivotal for the production of dimethyl ether (DME) which is an alternative to liquefied petroleum gas (LPG).

“MIND ID must get ready to run the energy transition program at President Jokowi’s behest. Because the holding member companies can dominate the energy transition market. Performance-wise, they are already on track,” Ferdy said while adding that he had high hopes for MIND ID’s performance this year.