Rancak Media – , JAKARTA — PT Indika Energy Tbk. (INDY) has provided an explanation for the recent surge in its stock price. Over the past three months, INDY’s stock has recorded a significant gain of 31.23%, drawing considerable market attention.
Azis Armand, President Director of Indika Energy, attributed this positive performance to the strong year-to-date (YTD) development in gold prices. He highlighted that the dynamics of INDY’s stock price this year have frequently been correlated with the substantial increase in gold prices over recent months. “The dynamics of INDY’s stock price this year are often linked to the very positive increase in gold prices over the past few months,” Azis stated during INDY’s public expose in Jakarta on Thursday, November 27, 2025.
Azis further noted that gold prices have hovered around the US$4,000 mark in recent weeks. Despite the prevailing optimism surrounding this trend, he urged a cautious approach from the company. He emphasized the importance of meticulous planning for production, considering not only the timing but also the associated costs. “Production plans must always be carefully developed, not just concerning timing, but also costs,” Azis elaborated.
: Indika Energy (INDY) Targets Awakmas Mine to Commence Production by End of 2026
In line with its strategic outlook for 2026, Azis disclosed that INDY’s primary focus would be on cash preservation and a strategic refocusing of its capital expenditure (capex). A key area for this refocused capex is the accelerated development of its gold mining projects. Through this re-prioritization of capital investment, the company aims to complete the construction of its Awakmas gold mine and initiate commercial production by early 2027.
Providing an update on the progress, Retina Rosabai, Director and Group Chief Financial Officer of Indika Energy, reported that the construction of the Awakmas mine had reached 43% completion as of October 2025, with an expenditure of US$234 million incurred up to that month. Furthermore, land acquisition for the Awakmas project stood at 99% complete by October 2025. “Our target is to achieve development completion in 2026, commence production by the end of 2026, and reach commercial production in 2027,” Retina affirmed.
Retina also revealed that, concurrent with the Awakmas development, INDY is actively engaging with several banks to potentially increase the existing loan amount, or “upsize” the loan. She explained that for the funding of the Awakmas project, the company secured a syndicated loan of US$375 million from four banks in June. “Given our assumption that the cost mix will increase, we are currently in discussions with several banks regarding the potential to upsize this loan,” Retina concluded, highlighting the proactive measures being taken to ensure adequate financing for the project’s successful completion.
Summary
PT Indika Energy Tbk. (INDY) has experienced a significant 31.23% surge in its stock price over the past three months, primarily attributed to the strong year-to-date development in gold prices, which have recently hovered around US$4,000. President Director Azis Armand affirmed this correlation but emphasized the importance of meticulous planning for production, considering both timing and costs.
Looking ahead to 2026, INDY plans to prioritize cash preservation and strategically refocus its capital expenditure on accelerating gold mining projects, aiming to complete the Awakmas gold mine construction and initiate commercial production by early 2027. As of October 2025, the Awakmas mine construction reached 43% completion with 99% land acquisition, and the company is actively discussing with banks to potentially increase its existing US$375 million syndicated loan to cover anticipated cost increases.
