· News
Bukit Asam is Transforming
BUKIT Asam management has decided to become an energy and chemical company that cares about the environment.
Of course, not without appropriate reasons why Bukit Asam wants to transform. Fuad I. Z. Fachroeddin (Fu), Director of Business Development for Bukit Asam, explained it clearly. “The world pressure on the existence of coal by prioritizing green energy in the future, like it or not, threatens the existence of the coal business,” he said in an interview with the editor of BeyondCoal Magazine.
“Indeed, the needs of the world and Indonesia’s demand for coal feedstock (raw material) as fuel for coalfired power plants remain dominant until 2050,” Fu Added . “And, we must be grateful that Bukit Asam has had very positive performance resulting from its core business, namely mining, transporting and selling coal as a coal.”
Nothing remains but change, Heraclitus, a Greek philosopher who lived in 540–480 BC. In the midst of the company’s development, the pace and innovation of technology affecting business models and the global economy in general. Leaders in technology and innovation will find ways to use the existing technologies we work on today to completely transform tomorrow’s markets, revenue models, and economies.
Let’s look at the previous review by Dwi Fatan Lilyana, Director of Human Resources (HR) Bukit Asam. All companies have a lifespan. “Study conducted by McKinsey&Company, a business consulting firm USA, found that the average age of the companies listed in the Standard&Poor’s 500 is an average of 61 years in 1958. Today, the life span of the company is only about 18 years,” he explains.
“McKinsey even believes that by 2027, 75 percent of the companies listed on the Standard & Poor’s 500 will disappear. Those companies will be acquired, merged, or go bankrupt like Enron and Lehman Brothers, ” said Lily. According to Lily, if we count the establishment of Bukit Asam from March 2, 1981, Bukit Asam is now 41 years old. It is far from the average age that McKinsey mentioned earlier, which is only 18 years. “But we can’t be careless. We have to study. The Mckinsey study can be one of our references,” he said.
Responding pressure from the world, Bukit Asam has made the right decision. At Town Hall Meeting on July 19, 2021, President Director of Bukit Asam Eko Suryo confirmed that the company would get revenue not only from mining products (coal). Yet, some 50 percent of it will derive from energy business. Bukit Asam is transforming.
In this regard, Fu – His nickname - said that Bukit Asam had to have a second business growth curve. Therefore, not only dependent on the core business but had a revenue engine more promising sustainability for Bukit Asam as company, “he said. “We know that there are many kinds of coal derivative products into chemical products. For example, polypropylene, Dimethyl Ether ( DME ), Mono Ethylene Glycol ( MEG ), and others. It makes Bukit Asam enter into the chemical business which is thus not dependent on the coal business.”
Not only that, but Bukit Asam also has many resources that make the company more muscular. The company also has human resources ready to generate revenue growth for Bukit Asam. Also, there are extensive post-mining lands, appropriate cash positions, large coal reserves, increased transportation capacity, and coal downstream.“- For post-mining land alone, currently it is recorded at 2,119 Ha, and it is estimated that by 2050, Bukit Asam’s post-mining land will reach 5,200 Ha. This must be well capitalized by Bukit Asam,” said Fu. ■
Of course, not without appropriate reasons why Bukit Asam wants to transform. Fuad I. Z. Fachroeddin (Fu), Director of Business Development for Bukit Asam, explained it clearly. “The world pressure on the existence of coal by prioritizing green energy in the future, like it or not, threatens the existence of the coal business,” he said in an interview with the editor of BeyondCoal Magazine.
“Indeed, the needs of the world and Indonesia’s demand for coal feedstock (raw material) as fuel for coalfired power plants remain dominant until 2050,” Fu Added . “And, we must be grateful that Bukit Asam has had very positive performance resulting from its core business, namely mining, transporting and selling coal as a coal.”
Nothing remains but change, Heraclitus, a Greek philosopher who lived in 540–480 BC. In the midst of the company’s development, the pace and innovation of technology affecting business models and the global economy in general. Leaders in technology and innovation will find ways to use the existing technologies we work on today to completely transform tomorrow’s markets, revenue models, and economies.
Let’s look at the previous review by Dwi Fatan Lilyana, Director of Human Resources (HR) Bukit Asam. All companies have a lifespan. “Study conducted by McKinsey&Company, a business consulting firm USA, found that the average age of the companies listed in the Standard&Poor’s 500 is an average of 61 years in 1958. Today, the life span of the company is only about 18 years,” he explains.
“McKinsey even believes that by 2027, 75 percent of the companies listed on the Standard & Poor’s 500 will disappear. Those companies will be acquired, merged, or go bankrupt like Enron and Lehman Brothers, ” said Lily. According to Lily, if we count the establishment of Bukit Asam from March 2, 1981, Bukit Asam is now 41 years old. It is far from the average age that McKinsey mentioned earlier, which is only 18 years. “But we can’t be careless. We have to study. The Mckinsey study can be one of our references,” he said.
Responding pressure from the world, Bukit Asam has made the right decision. At Town Hall Meeting on July 19, 2021, President Director of Bukit Asam Eko Suryo confirmed that the company would get revenue not only from mining products (coal). Yet, some 50 percent of it will derive from energy business. Bukit Asam is transforming.
In this regard, Fu – His nickname - said that Bukit Asam had to have a second business growth curve. Therefore, not only dependent on the core business but had a revenue engine more promising sustainability for Bukit Asam as company, “he said. “We know that there are many kinds of coal derivative products into chemical products. For example, polypropylene, Dimethyl Ether ( DME ), Mono Ethylene Glycol ( MEG ), and others. It makes Bukit Asam enter into the chemical business which is thus not dependent on the coal business.”
Not only that, but Bukit Asam also has many resources that make the company more muscular. The company also has human resources ready to generate revenue growth for Bukit Asam. Also, there are extensive post-mining lands, appropriate cash positions, large coal reserves, increased transportation capacity, and coal downstream.“- For post-mining land alone, currently it is recorded at 2,119 Ha, and it is estimated that by 2050, Bukit Asam’s post-mining land will reach 5,200 Ha. This must be well capitalized by Bukit Asam,” said Fu. ■
