Press Release

PT. Bukit Asam Tbk. ambitious to become the second largest coal producer in Indonesia in the next five years following various development projects that have been declared by the company. This state-owned company wants to shift PT Adaro Energy Tbk's position which this year is targeting production of 50 million tons. The largest coal producer is currently held by PT Kaltim Prima Coal with production of 60 million tons in 2018. "We are a company with the largest resources and coal reserves in Indonesia. In five years, we are targeting production of 58 million tons so that it can become the second or third largest player," said Director Bukit Asam (PTBA) Arviyan Arifin. Currently, PTBA has 8.27 billion tons of resources and 3.33 billion tons of mined reserves. The Company is completing a number of development projects to facilitate the distribution of mining products. One of them is the railway project to Prajin Port, in the northern part of South Sumatra Province (Sumsel) which will increase the distribution capacity of 10 million tons per year. The project is expected to be completed by 2022. In addition, PTBA is also completing a railway line in the southern part of Lampung that will increase its distribution capacity to 20 million tonnes by 2023. Outside that the existing lane repair is also being done in both Kertapati, Sumsel and Tarahan trails, Lampung. The production plan will be fulfilled if all of PTBA's development projects are completed on time, including several power generation auctions that are followed by the company. So far, management has felt that capacity is large enough to meet the target. PTBA also seeks to create value-added coal production by building a mine mouth power plant, namely Sumsel 8 in Banko Tengah with a capacity of 2 x 620 MW with an investment of US$ 1.26 billion. In this project, PTBA invested 45% of its shares and is expected to be completed by 2021 with coal consumption reaching 5.4 million tons per year. The company will also supply coal for Peranap, Riau with a capacity of 2x300 MW, with coal consumption of 4.2 million tons per year starting from 2023. "In Sumsel 8, will be PLTU with the cheapest electricity selling price because the price of coal is fixed. If all our projects are running, we can continue to increase production to 75 million tons per year," said Arviyan. According to him, the company must fight against time so that coal reserves can be utilized with the price is also good as now. "Because, we do not know whether in the future coal is still a favorite commodity as the discovery of other alternative energy sources," explained Arviyan. He added, with the current condition, PTBA still can score good performance with sales volume reached 6.3 million tons in the quarter I/2018, or grew 16% from last year. The profit achieved reached Rp1.45 trillion, or contribute nearly half of the net income achieved by the parent company PT Inalum (Limited) valued at Rp3 trillion. (Source : www.binis.com)