PT Bukit Asam Tbk held the Annual General Meeting of Shareholders (AGM) for Financial Year 2018 on Thursday (04/25). At the AGMS 2018, the Company distributed dividends of Rp. 3.76 trillion. The amount of cash dividends distributed is 75% of the company’s total net income in 2018, amounting to Rp 5.02 Trillion.
Other AGMS result was some changes to the Company’s nomenclature positions in the context of alignment and coordination effectiveness within Mining Industry Holding. Changes to the existing nomenclature positions were as follow: Director of Production Operations to Director of Operations and Production, and Director of HR and General to Director of Human Resources.
Besides dividend distribution and the company's management changes, the AGMS for the Financial Year 2018 also approved the Annual Report of the Board of Directors regarding the condition and operation of the Company during the Financial Year 2018; Annual Report including the Financial Report of the Partnership Program and Community Development Program for 2018; Tantiem Decision for the Company's Board of Directors and Board of Commissioners for Financial Year 2018 and Salary / Honorarium; and Public Accountant Office appointment to audit the Company's Financial Report, Partnership Program, and Community Development Program for 2019.
Performance and Achievement of 2018
In 2018, Bukit Asam's performance showed increase and development as seen in Bukit Asam's net profit, which exceeded Rp. 5.02 Trillion, up 12% from Rp. 4.48 Trillion of 2017 net income. This achievement recorded to be the highest since the Company first operating. The increase in business revenues, export sales and sustainable efficiency were the main factors for net income in 2018.
Meanwhile, in 2018 the Company recorded a 9% increase in operating income to IDR 21.17 trillion consisting of 49% domestic coal sales, 48% export coal sales and 3% other business activities such as electricity sales, briquettes, palm oil raw, hospital health services and rental services. The increase in operating revenues was supported by a significant increase in export coal sales revenue of Rp 2.44 Trillion.
Coal sales volume in 2018 reached 24.69 million tons or increased by 4% from 2017. The composition of this sales volume consisting of 56% domestic market and 44% export market. The increase in sales volume was supported by an increase in coal production volume throughout 2018.
In 2018, the Company received 42 awards from the Government and various domestic and foreign institutions. At the end of 2018, the Company again received the Proper Gold award from the Ministry of Environment and Forestry of the Republic of Indonesia, the sixth time in a row since 2013. In addition, the Company also received other awards such as the Asian Export Award 2018 in the metal and mining category, Indonesia Mining Award 2018 in the Highest Coal DMO Supplier category, and The Best Overall BUMN in the 2018 BUMN Award. In 2018, the Company's coal production increased by 9% from the previous year to 26.36 million tons. Meanwhile, coal transportation by train also increased by 1.32 million tons to 22.69 million tons in 2018.
This brilliant achievement cannot be separated from management's strategy in optimizing export market opportunities to several countries such as India, South Korea, Hong Kong and Thailand, despite of import restrictions by China as the largest export market share. Not only that, this success is also supported by a strategy to optimize the sale of medium to high calorie coal exports to the premium market with double tonnage compared to the previous year.
The Company’s share performance in 2018 was improved. At the opening of 2018 trading on January 2, 2018, PTBA's shares were recorded at Rp 2,500 - per share and at the close of trading on December 31, 2018, PTBA's share price was recorded at Rp. 4,300,-
2019 Target
In 2019, the Company’s coal sales target is 28.38 million tons, consisting of 13.67 million tons domestic sales and 14.71 million tons export sales. The 2019 sales target increased 15% from the realization of coal sales in 2018. This increase is due to the export sales plan for medium to high calorie coal to the premium market of 3.8 million tons.
In order to support the sales target, the Company sets target of the coal production to 27.26 million tons, 3% increase from 2018 realization production of 26.36 million tons. The target of coal transportation by train is also increasing to 28.38 million tons with the composition of Tanjung Enim to Tarahan at 21 million tons and Tanjung Enim to Kertapati at 4.3 million tons.
The coal transportation from the mine site in total amounted to 23.10 million tons, consisting of 19.40 million tons to Tarahan Port, Lampung and 3.70 million tons to Kertapati Pier, Palembang; 13% increase from 2017 target of 20.50 million tons.
Coal Downstreaming
In line with the beyond coal tagline, the Company together with Pertamina and Air Products signed a Memorandum of Understanding for gasification of coal to dimethyl ether (DME) and synthetic natural gas (SNG) in Allentown, United States on November 7, 2018; with the Minister BUMN, Rini M Soemarno and President Director of Inalum, Budi Gunadi Sadikin as witnesses.
The location of coal gasification is at Mulut Tambang Peranap, Riau. Not only as a form of SOEs synergy, this collaboration’s purpose was to increase coal added value, by developing a low-calorie coal downstream business, with Pertamina as DME offtaker and Air Products as the coal gasification technology’s owner.
This Coal Downstreaming Collaboration Signing was followed by the Signing of Collaboration Framework for the Joint Venture Company Establishment on January 16, 2019 by PTBA, Pertamina and Air Products in Jakarta. The purpose of this signing was to be the basis for the commencement of the feasibility study of the coal to gas business potential. In the beginning of February 2019, the launching of the Coal Downstreaming Plant in Peranap, Riau, became the first step of PTBA transformation. This project is planned to start production in 2023 with coal consumption of 8.7 million tons per year from PTBA’s Peranap mine.
In addition, the Company together with Pertamina, Pupuk Indonesia and Chandra Asri Petrochemical also launched the Coal Downstreaming Industry in Bukit Asam Coal Based Special Economic Zone (BACBSEZ) in Tanjung Enim. This downstreaming process, transform calorie coal to become syngas for urea production with a capacity of 570 thousand tons per year, Dimethyl Ether (DME) with a capacity of 400 thousand tons, and polypropelene with a capacity of 450 thousand tons per year. This project is planned for the Commercial Operation Date (COD) by the end of 2022, with coal consumption’s target 6.2 million tons per year.
Synergy with Other SOEs
To optimize the coal transportation, PTBA established collaboration with PT Kereta Api Indonesia (Persero) to develop a railroad coal transportation project with a capacity of 60 million tons per year by 2023, including new railways of Tanjung Enim-Prajin and Tanjung Enim-Tarahan II.
Tanjung Enim-Prajin has a capacity of 10 million tons per year, while Tanjung Enim-Tarahan II has a capacity of 20 million tons per year. The two railways are planned to start operating in 2023.
