Coal miner Geo Energy Resources on Tuesday said it has formed a new subsidiary to invest in a controlling stake in an online e-commerce portal in Indonesia.
The unit, PT Geo Online Indonesia (Geo Online), was incorporated with an authorised capital of 10 billion rupiahs (S$1 million) and an issued and paid-up capital of 2.5 billion rupiahs, and will engage in trading, e-commerce, information technology and communication businesses.
The proposed investment marks Geo Energy's foray into non-coal related business since its establishment in 2008 and to invest in the thriving e-commerce sector in Indonesia, the company said in a statement.
According to Google's findings, out of 100 million internet users in Indonesia, 81 million of them transacted through e-commerce platforms.
"It (the proposed investment) will enable the group to gain access to an e-commerce platform and allow the group to capitalize on Indonesia's fast-growing demand for online shopping with a growing internet consumer base in Indonesia", the company said.
The group is currently in discussions on the proposed investment and an appropriate announcement will be made later. Discussions are still at a preliminary stage, it said.
Shares in Geo Energy rose 1.9 percent to S$0.27 on the Singapore Exchange. The stocks has gained 20 percent so far this year.