PT Bukit Asam Tbk (PTBA), a member of the MIND ID SOE Mining Industry Holding held an Annual General Meeting of Shareholders (AGM) for Fiscal Year 2019 at the Borobudur Hotel, Jakarta, Wednesday (10/6). In the AGM, PTBA paid dividend of IDR3.65 Trillion. The amount of cash dividends paid was 90 percent of the company's total net profit in 2019 of IDR4.1 trillion.
In addition to the stipulation of dividend distribution, through this AGM the Board of Directors' Annual Report was approved regarding the Situation and Progress of the Company During Fiscal Year 2019; the ratification of the Annual Report including the Financial Statements of the Partnership and Community Development Program Fiscal Year 2019; the stipulation of Royalties for the Directors and Board of Commissioners of the Company for Fiscal Year 2019 and Salary / Honorarium Following Facilities and Other Benefits for Fiscal Year 2020; the approval of the Appointment of a Public Accountant Firm to Audit the Company's Financial Statements, and the Partnership and Community Development Program for Fiscal Year 2020; and Approval of Amendments to the Articles of Association of the Company in the context of Adjustment to the 2017 Indonesian Business Field Standard (KBLI).
The AGM resolution also approved the change in the Company's management composition including the appointment of Hadis Surya Palapa as Director of Operation and Production replacing Suryo Eko Hadianto. In addition, the AGM results appointed E. Piterdono HZ, Carlo Brix Tewu, and Irwandy Arif as commissioners to replace Robert Heri, Taufik Madjid, and Soenggoel Pardamean Sitorus. Meanwhile, Andi Pahril Pawi was appointed as an independent commissioner replacing Heru Setyobudi Suprayogo.
2019 Performance
Amid weakening trend in coal prices, PT Bukit Asam Tbk was able to record a return on year performance of IDR4.1 Trillion with EBITDA of IDR6.4 Trillion. The Company managed to record an increase in revenue from IDR21.2 Trillion to IDR21.8 Trillion or 3% from the previous year. This revenue consisted of 57% domestic coal sales revenue, 41% export coal sales and 2% other activities which included sales of electricity, briquettes, crude palm oil and palm kernel, hospital health services and rental services.
The achievement of profit and income was definitely supported by the company's operational performance which had increased compared to the previous year. In 2019, the company's coal production increased 10.2% from the previous year or increased to 29.1 million tons.
The capacity of coal transportation also increased to 24.2 million tons, up 7.0% from 2018. This increase in coal production and transportation has also boosted coal sales. During 2019, the Company succeeded in selling coal by 27.8 million tons, up 13% from the previous year. The increase in sales volume was due to expansion into potential markets such as Japan, Hong Kong, Vietnam, Taiwan and the Philippines and success in adding new potential markets such as Australia, Thailand, Myanmar, and Cambodia. Not only encouraging export sales to Asian countries, the Company also made export sales of medium to high calorie coal to the premium market.
Throughout 2019, the Company also received a number of prestigious awards including Best Overall BUMN for Big Corporate category in the 2019 BUMN Award event, 3rd Place in the Annual Report Award 2019 for Private Listed Non-Financial category, 1st Place for BUMN Best Enterprise Empowerment Companies category in the Indonesia Mining Associationn Award, Indonesia Most Trusted Companies in the 2019 Good Corporate Governance Award, and 1st Place in the Compliance Sector in Mineral and Coal PNBP Obligatory Payments with the Largest PNBP Contribution of SOEs in the 2019 Subroto Award.
In addition, in 2019 Bukit Asam sold treasury shares from the 2013-2015 share buyback of 649 million shares carried out in several stages including sale of treasury shares on April 2, 2019 totaling 63.17 million shares at a price of Rp 4,220 per shares, May 8, 2019 totaling 490.72 million shares at a price of Rp 3,400 per share, and December 4, 2019 totaling 96 million shares at a price of Rp 2,500 per share.
2020 Target
The Company has coal production plan of 30.3 million tons in 2020. This number is up 4% from the previous year's realization of 29.1 million tons. In addition, the transportation target in 2020 will be 27.5 million tons or an increase of 13% from the realization of railroad transportation in 2019 of 24.2 million tons.
As for coal sales volume in 2020, Company has target to increase the volume to 29.9 million tons consisting of domestic coal sales of 21.6 million tons and export coal sales of 8.3 million tons or a total of 29.9 million tons, which is up 8% from the realization of coal sales in 2019 of 24.7 million tons.
Coal Downstreaming
As an effort to develop coal downstream/processing business, PTBA together with strategic partners (potential offtakers, potential investors, and owners of coal gasification technology), have signed cooperation agreement documents in 2019 which then starting in 2020 continued with detail engineering design phase for preparation of Coal To Chemicals plant construction after all pre-construction requirements have been met. The plant is targeted to start commercial production in 2025 with coal consumption of around 6 million tons per year for a minimum of 20 years.
Synergy with other SOEs
To support the optimization of coal transportation, PT Bukit Asam Tbk has collaborated with PT Kereta Api Indonesia and in early 2020 has completed the development of the Tanjung Enim - Kertapati railroad coal transport project with a capacity of 5 million tons/year, along with the development of the Kertapati Jetty facility. Meanwhile, the coal transportation project Tanjung Enim - Tarahan (Tarahan-I) railroad becomes 25 million tons/year by the end of 2020.
