Enegra Limited is an Australian public unlisted company and was formed as a mineral commodities trading, logistics and trade finance company. PT Enegra, a 100% owned subsidiary, is the only Indonesian operated commodity trading house, which offers off take, trade finance and logistical support to Indonesian miners.
The Enegra business model is simple: Commodity off take contracts with miners, who benefit from consistent revenues and stabilized cash flows to maintain production and utilization rates to improve mining efficiency. Enegra offers miners the opportunity to obtain regular cash flow, the ability to fund their trades and manage upstream risks. The result is a win-win for Enegra and the miner.
The Enegra Board and Executive team has been drawn from a wealth of Australian knowledge and expertise. The Management team has been selected from a base of strong sector knowledge and has significant local content with over 85% of staff being Indonesian professionals and technicians.
The Enegra mission is to corporatize and consolidate existing ad hoc commodity markets in Indonesia, to achieve global standard exchange tradable commodities. The initial focus is on coal products, which underpin industrialization, manufacturing and domestic market demand for electrical power globally. The Enegra vision is to achieve over one third market share of existing Indonesian coal trade by 2015.
Major importers of coal are Japan, China and Korea. Australia and Indonesia lead the world in coal exports. Indonesia has an abundance of coal and is strategically better positioned with regard to major coal importers, relative to Australia. Indonesia has sound economic fundamentals that include low debt levels, low inflation, low cost base, high level of infrastructure development, and a motivated and skilled workforce. Indonesia is a stable economic environment, has low political risk and is rated as Investment Grade by Moody’s and S&P.
Enegra is able to achieve superior volumes through its full membership of the “Global Coal” commodity exchange. Enegra trades with qualified counterparties, fellow members of the Exchange, which include some of the largest names in the industry. The Enegra business model works on audit, certification and compliance to international commodity exchange standards. To mitigate supply chain risk, Enegra has insurance in place for coal trades with Lloyds Insurance.