Indonesia Digest: Blocknom to shut temporarily; Indika forms 4-wheeler unit

Photo: Hitesh Choudhary/Unsplash

Y Combinator-backed blockchain startup Blocknom is set to discontinue its services temporarily, starting July 1, in a bid to get licensed. Separately, IDX-listed Indika Energy has established a subsidiary called Mitra Motor Group (MMG) to foray into the automobile industry.

Blocknom announces temporary shutdown

Blocknom, a Y Combinator-backed blockchain startup, announced on Thursday that it will discontinue its services temporarily, starting July 1, in a bid to get licensed.

The startup did not offer a timeline on when the service will be back online but is urging users to withdraw their assets before July 31.

Launched in January 2022, Blocknom lets users park their blockchain assets and earn a high yield. The startup promises an interest of up to 13% per annum by deploying assets to institutional borrowers in the decentralised finance (DeFi) industry.

In an interview with DealStreetAsia earlier this year, Blocknom co-founder and CEO Fransiskus Raymond confirmed that the firm is yet to obtain permits from the Indonesian authorities but has tied up with MAS-licensed XFers to convert fiat money into stablecoins.

“We are [operating] in what was initially considered a grey area because our focus is how to help optimise crypto assets owned by the people,” Raymond said at that time.

In Indonesia, crypto assets are seen as a tradable commodity but it is forbidden by law to use them as a means of payment.

Indika Energy forms a 4-wheeler unit

IDX-listed Indika Energy has established a subsidiary called Mitra Motor Group (MMG) to foray into the automobile industry, according to a filing with the stock exchange.

Indika’s subsidiary, PT Solusi Mobilitas Indonesia (SMI), holds nearly 100% of the new entity while a minuscule part is owned by another subsidiary, PT Indika Energy Infrastructure (IEI).

Indika, which is one of Indonesia’s top coal miners, has been diversifying into nickel trade and green businesses, including solar power, forestry and electric vehicles, amid environmental concerns against the use of coal.

MMG will cover businesses in the four-wheeler industry, including general trading for new cars and their spare parts, operating electricity supply installations and management consultancy services.

Indika Energy ventured into the electric vehicle sector by setting up SMI in March. The company has since jointly invested in electric two-wheeler company Ilectra Motor Group (IMG) with venture capital Alpha JWC Ventures and Hong Kong-based PE firm Horizons Ventures in May.

 

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

This is your last free story for the month. Register to continue reading our content