2018 was a very encouraging year, along with the success of the Company in recording excellent operational and financial performance. Production volume, sales volume, and net income of the Company showed a significant increase compared to the target and previous year’s actual figures.
In the midst of the global economic uncertainties conditions caused by several things, such as the Federal Reserve that raised interest rates three times during 2018, the United States–China trade war, the Turkish crisis, and the political crisis and financial turmoil in Italy, the Company is still able to show operational and financial performance due to the implementation of effective business strategies and sustainable efficiency, including by selling medium to high calorie coal exports to premium markets that have begun to be optimized in the third quarter since 2018.
In addition, the achievement of the Company’s brilliant performance was supported by the implementation of several other initiative strategies, including increasing productivity, continuous cost efficiency which is becoming part of the Company’s culture, as well as maximizing the opportunities for global coal price increases. The initiative strategies were implemented with due observance of the external conditions such as the weakening of the Rupiah against the US dollar and certainly the increasing coal demand, both from China due to a lack of domestic coal supply during extreme summers and India whose production was still unable to meet domestic demand until there was an increase in demand for South Korea.
Achievements in 2018 in detail:
- Sales volume reached 24.69 million tons or 95% from the 2018 target of 25.88 million tons, and reached 105% from the previous year’s realization of 23.63 million tons.
- Production volume reached 26.36 million tons or reached 103% of the target set at 25.54 million tons, and increased by 9% compared to the realization of production volume in 2017 of 24.23 million tons.
- Railway transportation volume reached 22.69 million tons or reached 98% of the target set at 23.10 million tons, and reached 106% compared to the realization in 2017 of 21.36 million tons.
- Revenues during 2018 was booked at Rp21,17 trillion or increased by 9% compared to revenues in 2017 of Rp19.47 trillion.
- The Company’s net profit was booked at Rp5.02 trillion, or increased by 12% from the previous year’s net profit of Rp4.48 trillion.
In line with the PTBA “Beyond Coal” tagline, the Company will develop business opportunities from the Coal Downstreaming Industry plan. The Company has signed a Head of Agreement with PT Pertamina (Persero), PT Pupuk Indonesia (Persero), and PT Chandra Asri Petrochemical on December 8, 2017 to establish a mine-mouth Coal-to-Chemical-Plant at Tanjung Enim, South Sumatra with the consumption coal reaching 9 million tons/year.
Still related to the coal downstreaming, the Company, along with PT Pertamina (Persero) and Air Products and Chemicals, Inc. signed a cooperation agreement to gasify coal into dimethyl ether (DME) and synthetic natural gas (SNG). This cooperation is a strategic step for all parties in order to increase national resilience, independence and energy sovereignty, through the use of DME and SNG. DME itself is one of the coal downstream products intended as a substitute for LPG. Therefore, the coal gasification plant is a very strategic project nationally and reflects the utilization of energy from within the country for the people of Indonesia.
In addition, the Company also has several power plant development projects such as the Mine Mouth Coal Fired Power Plant Sumsel 8 and Feni East Halmahera Coal Fired Power Plant. The development projects are the Company’s commitment to not only have a business in the generic field but also have business in the field of power plants field, and eventually it will develop into the beneficiation field. Armed with such commitment, the Company is very ready to continue developing power plants and downstream coal products to ensure business sustainability.