High Calorie Coal Bukit Asam Is Ready to Export to Asia

By : Arya Mandala And Aldo Bella Putra | Saturday, March 17 2018 - 17:00 IWST

Ilustrasi Tambang Batu Bara PT Bukit Asam Tbk
Ilustrasi Tambang Batu Bara PT Bukit Asam Tbk

INDUSTRY.co.id - High Calorie Coal Bukit Asam Ready to Export to AsiaJakarta, High-calorie coal produced by PT Bukit Asam Tbk (PTBA) will be exported to a number of Asia. This step is an effort to accelerate income often steps the government to limit DMO bricks to a maximum of US $ 70 Per Ton.

President of Indonesia Joko Widodo finally signed Government Regulation (PP) number 8 of 2018 about the reference price of coal for domestic domestic market obligation (DMO) needs.

In a derivative regulation in the form of Ministerial Regulation (Permen) of ESDM will require coal producers to allocate 25% of their production for domestic power plants.

In addition, the price set for the DMO limit for electricity is US $ 70 per ton.

Meanwhile, when coal prices fall, it will be based on the reference price of coal. Currently the reference price of coal continues to burn, reaching over US $ 100 per ton.

Responding to the policy, PT Bukit Asam Tbk (PTBA) admitted not anxious. The subsidiary of PT Inalum (Persero) will implement several strategies to keep its coffers not eroded.

One of them re-produces high calorie type coal.

The strategy was expressed by PTBA President Director, Arviyan Arifin. According to him, high-calorie coal to be produced amounts to about 3 million tons with 6,400 kcal of calories.

"We already have buyers who will absorb the high-calorie coal production," he said during a press conference PTBA Performance Exposure in Jakarta, Monday (12/3).

However, Arviyan said that his party needs to make special preparations to produce the coal.

"It's a step, so some buyers have orders first, but we need preparation," he said.

While PTBA Director Adib Abdillah said the high-calorie coal market is mostly from abroad such as Japan, Taiwan, India and Malaysia.

"There are also those from within the country but the numbers are small, especially from the steel smelting industry," Adib Abdillah added.

For sale price Adib said this product will be marketed at a premium price of US $ 5 above the price of other types of coal.

By producing high-calorie coal, PTBA claims to be able to compensate 25% of production to be sold domestically for US $ 70.

In addition, said Arviyan, the price set by DMO is actually still higher than the average price of coal over the last three years.

"Therefore, there is no need to worry about the DMO policy," he explained.

Related to the performance, throughout 2017 PTBA recorded a net profit of Rp 4.47 trillion or an increase of 223% over the same period in 2016 which recorded Rp 2.06 trillion.

The company's EBITDA rose 102 percent year-on-year, up from Rp 2.62 trillion to Rp 5.03 trillion.

The increase in net income according to Arviyan makes PTBA earnings per share (EPS) to Rp 425 or up 124% from the position of EPS in 2016 which amounted to Rp 190.

For capital expenditure funds, PTBA has budget Rp 6.5 trillion to be allocated for Rp 1.4 trillion for routine expenditure.

The remaining Rp 5.12 trillion is for business development investment, including the development of PLTU Mulut Tambang South Sumatera 8.

News Comment

Today's Industry

TokoScore owns features of income prediction and fraud flags. (Photo: indotelko.com)

Kamis, 22 September 2022 - 12:29 WIB

Encouraging Financial Inclusion, Tokoscore Services Enable to Raise GOTO Revenue

The expansion of PT GOTO Gojek Tokopedia Tbk (GOTO) into the creditworthiness analysis business as known as credit scoring, through Tokoscore, has received a positive response from market players.…

Alternative tobacco products. (Photo: lifestyle.sindonews.com)

Rabu, 21 September 2022 - 11:20 WIB

Indonesia Needs to Encourage Alternative Tobacco Products Research Collaboration

The scientific studies development on alternative tobacco products in Indonesia is still too minimal. The Indonesian government is suggested to encourage research collaboration on alternative…

Alternative tobacco products. (Photo: lifestyle.sindonews.com)

Rabu, 14 September 2022 - 12:30 WIB

Adult Smokers Entitled to Valid and Reliable Information of Alternative Tobacco Products

Public owns the rights to obtain valid and reliable information to improve their health quality. The same rights is also owned by adult smokers, particularly to pertinent information about the…

Tikki Pangestu, the former Director of Policy Research and Cooperation of World Health Organization (WHO). (Photo: channelnewsasia.com)

Selasa, 06 September 2022 - 19:10 WIB

Alternative Tobacco Products, Strategy to Reduce Smoking Prevalence

The high smoking prevalence has been closely associated with increased smoking-related diseases. Alternative tobacco products are predicted to be one of the solutions that can help reduce smoking…

GoTo is a blend of Gojek and Tokopedia. (Photo: republika.co.id)

Rabu, 31 Agustus 2022 - 12:26 WIB

More Efficient Business, GOTO Q2-2022 Contribution Margin Soars

A technology issuer with a leading ecosystem in Southeast Asia, PT GoTo Gojek Tokopedia Tbk (GOTO), releases the first half of 2022 financial performance to the same period in 2021 (year on…