Amid the decrease trend in global coal prices, the Company remains committed to increase the growth rate of its coal production. This commitment is proven by continuosly increase of the Company’s coal production in which is followed by the increasing in railway transport capacity. This could be seen from the Compound Annual Growth Rate (CAGR) of railway production and capacity of railway in the last years 2015 until 2019, respectively 8.80% and 11.31%. The increase of railway transport capacity is part of the coal transportation agreement clause with PT KAI. This agreement also helped the Company to continue to increase production by implementing an integrated production strategy, namely focusing on aspects of efficiency, quality of production, and maintaining coal availability at optimal levels without setting aside the implementation of the principles of Safety, Occupational Health and Environment (OHS).
Subsidiaries/affiliates of PT BPI and PT HBAP contribute to the revenue of the Company through profit absorption according to the portion of the Company’s share ownership. In 2019, the comprehensive profits of PT BPI and PT HBAP were Rp202.25 billion and Rp132.54 billion. So that the profit contribution for the Company in the current year amounted to Rp179.45 billion.
Coal production in 2019 was realized at 29,068,924 ton consisting of the production of the Tanjung Enim Mining Unit (UPTE) of 28,075,437 tons, the production of Peranap Mining Unit of 4,445 tons, and PT Internasional Prima Coal (IPC) of 989,042 tons. The production achievement in 2019 has increased by 10% from the achievement of the previous year’s production. To optimize the selling of the Company’s coal, then in 2019, the Company did not carry out coal purchasing.
|Description||2020||2019||2018||2017||2016 (ton)||Deviation||Increase/Decrease (%)|
|Tanjung Enim Mining Unit|
|• Air Laya Mine||5.270.842||7.777.286||7.815.650||5.560.381||2.255.269||9.805.949||41|
|• Muara Tiga Besar North||7.253.285||7.020.898||5.912.219||5.921.553||2.883.226||(9.334)||(1)|
|• West & Central Banko||11.710.244||13.277.253||11.640.131||11.893.359||6.089.692||(253.228)||(2)|
|Total UPTE Production||24.234.371||28.075.437||25.368.000||23.375.293||18.778.867||1.992.707||9|
|Peranap Mining Unit||7.451||4.445||2.115||-||-||2.115||111|
|PT Internasional Prima Coal (IPC)||600.538||989.042||985.286||870.505||844.025||114.781||13|
|PT Bukit Asam Prima||-||-||-||364.669||1.198.358||(364.669)||(100)|
|Total Production and Purchase||24.842.360||29.068.924||26.355.401||24.610.467||20.822.247||1.744.934||7|
The Company cooperates with PT Kereta Api Indonesia (PT KAI) in the process of coal transportation from Tanjung Enim to Tarahan Port Lampung and Kertapati Barge Port Palembang. The process of coal transportation includes:
|Tanjung Enim – Tarahan||18.226.112||20.783.148||19.670.165||18.261.978||14.706.099||1.408.187||8|
|Tanjung Enim – Kertapati||5.571.504||3.458.856||3.017.087||3.101.352||3.014.728||(84.265)||(3)|
Coal sales are still dominated by a desire to meet the needs of the domestic coal market, with a composition that reached 60.00% when compared to total sales volumes in 2019. To encourage revenue growth on sales, the Company sought to encourage export sales to countries such as India, Hong Kong, the Philippines, and a number of other Asian countries. In addition, the Company also sought to apply the sale of Medium to High Calorie coal products to the premium market, with the aim of increasing margins and increasing profit performance.