Assessing the Future Prospect Investment of Coal Mining Company: PT Indika Energy Tbk

Abstract

Coal has a negative impact on the environment. Coal can cause global warming, water pollution, air pollution, and various diseases for humans. However, coal is multifunctional energy sources that widely used in various industry and manufacture. Various countries of the world, as well as financial institutions, have agreed not to provide investment and funding to the development of coal power plants. By using PESTEL, Porter Five Forces, Financial Analysis, Financial Ratio, and Valuation author analyzed the investment prospects in coal companies, especially PT Indika Energy Tbk. Coal sector growth in the long term predictably is relatively limited even decreasing. However, in the short term, the demand will still be very large. That's because renewable energy still can't cover the huge energy needs. The supply deficit due to COVID-19 is likely to push up coal prices. Strong historical financial condition, good management, and undervalued valuation make PT Indika Energy Tbk attractive enough to be an investment object.

Keywords: Coal Sector, Environment, Investment Prospect