Until the end of 2017, the trend of global economic recovery was still ongoing. After a slowing economic growth last year, the World Bank, through Indonesia Economic Quarterly, stated that Indonesia’s economic growth was expected to remain robust in 2017. There was two supporting components to the growth, namely the rebound in investment and improvement in manufacture activity.Economic growth in major countries such as the United States, Japan, China, and other European countries also backed the trend of a global economic recovery.
Recovery was continuing with an assessment of the global trade side. World Bank’s Global Economic Prospects states that 2017 was a momentum for the revival of international trade interactions. The background of this improvement was the strengthened investment in developed countries, the increase in trade flows to and from China, as well as the rise of import demand from export markets that export commodities from emerging markets.
Indonesia’s economic growth in 2017 was quite optimistic, especially when compared to the condition of the last three years. Indonesia’s Central Statistics Bureau (BPS) revealed that the average economic growth of Indonesia up to the Q3 of 2017 managed to hover at around 5.06%, accelerating from the same period in 2016.
The Company managed to realize the coal production and purchases amounting to 24,610,467 tons or 118% from the realization of 2016 which amounting to 20,822,247 tons. In regard to coal transportation operations, transportation using Trains in 2017 was realization to reach 21,363,330 ton or reaching 121% from the realization of 2016 at 17,720,827 ton.
In terms of sales segment, the Company managed to realize 23,627,875 tons of coal sales or 114% from the realization of 2016 which was at 20,753,167 tons. The sales consisting of domestic sales amounting to 14,386,772 tons or 117% from the realization of 2016 that amounting to 12,267,446 tons and export sales which amounting to 9,241,103 tons or 109% from the realization of 2016 amounting to 8,485,700 tons.
The continuing fluctuation in coal price remains as one of the challenges faced by the Company despite the recovery trend in coal prices in 2017. In order to survive amidst such challenging time while continuing its contribution to the shareholders and stakeholders, the Company prioritizes cost-cutting measures and efficiency in all aspects.
Other challenges that arise are the insignificant growthof domestic coal demand due to various issues including logistics. The Company’s limitation in transporting coal from Tanjung Enim to Tarahan Port and Kertapati Dock has been a another crucial issue which, in particular, relates to the Company’s sales performance as the final result. One of the Company’s strategy to address such challenges is by improving synergy with Kereta Api Indonesia (Persero), which is realized through the construction of double track project.
In regard to the Company’s joining into the SOE Mining Holding, which is spearheaded by PT Inalum (Persero), we shall focus on the common strategies and diversification efforts. Hence, the Company will not depend only on industry but also on other mineral products. standards in Indonesia.
All of members of the Board of Directors extend their biggest appreciation and gratefulness to all of the shareholders, shareholders, and business partners. Our profound gratitude especially goes to the Board of Commissioners, management, as well as all of the employees that have contributed
to the growth and development of the Company. Our appreciation also goes to the government, regulators, public and consumers for their unwavering support towards the betterment of the Company. Armed with the full support of all parties, the Company is committed to achieving its vision as a world-class energy company that always cares about the environment.