Press Release

JAKARTA - PT Bukit Asam Tbk. (PTBA) through its subsidiary, PT Bukit Multi Investama, acquires the entire stocks of a palm plantation company, PT Bumi Sawindo Permai (BSP) with total transaction 861 billion rupiah. BSP has an 8,346-hectare oil palm plantation at Banko area, Tanjung Enim, South Sumatra where the land becomes part of the Bukit Asam mining business license (IUP). Around 34.6 hectares of the plantation area is also equipped with one palm oil processing plant that has the capacity to produce up to 45 tons of fresh fruit bunches per hour, and a 5-megawatt power generator that’s fueled by palm oil waste.

Corporate Secretary Joko Pramono stated that kind of strategy was a proper action to fulfill the needs of coal for company’s electric steam power plant (PLTU). The target located on the company’s South Sumatra mining concession, which would bring not only additional mineable resources to the company, but also diversified revenue from the palm oil business. The acquired land contain 580mn tons of coal (PTBA’s Tanjung Enim total reserve 1.59bn) meanwhile around 50% of the palm oil estates are harvestable. He also said the plantation of BSP will contribute positively for PLTU Mulut Tambang development by managing the palm oil and coal resources together and supplying the energy internally. The coal also will be used for PLTU Banko Tengah with capacity 2x620 megawatt.

PT Huadian Bukit Asam Power with China Huandian is an electric steam power plant which held by PTBA’s subsidiary and scheduled to operate in 2017. Bukit Asam also plans to build a large power plant in the area, aiming to bring it on-stream within that year. This PLTU worth $1, 6 billion and is prepared for electricity needs in Sumatra and Java. In 25 years, there is an estimation in supply contract about coal needs will hit 150 million tons per year and it is a part of long term company supply contract which hits 574 million tons. While, PTBA will commercially operate PLTU Banjarsari with 2x110 megawatt capacity at Labat, South Sumatera, on November 2014. PLTU Banjarmasin will be the first company independent power producer (IPP) and is approximated pervade 1,4million tons per year. PTBA has already set a goal to become an energy company in 2018 which sell electricity 1500 megawatt at minimum and set a power plant construction project at number 3500 megawatt. As the result, this state-owned coal miner has produced 6, 43 trillion rupiahs as profit in first half of the year.

(Source: Bisnis Indonesia, page 9. October 22, 2014)