PT Bukit Asam (PTBA) still managed to record a positive performance in the first quarter of 2021 amid Indonesia’s challenging economic recovery.

This was reflected in PTBA’s net profit of Rp 500.5 billion, or Rp 45 per share, in the first quarter of 2021. The profit was supported by the company’s revenue collection of Rp 3.99 trillion.

As part of the anticipatory measures during the Covid-19 pandemic, PTBA has continued to take efficiency steps. This was reflected in the general and administrative expenses, which fell 19% to Rp 339.33 billion compared to the first quarter of 2020.

Such efficiency measures did not hinder PTBA from growing further. The company’s total assets rose by 2% within only three months from Rp 24.1 trillion in 2020 to Rp 24.5 trillion at the end of the first quarter of 2021.

The increase in assets was in line with the drop in liabilities from Rp 7.1 trillion in 2020 to Rp 6.9 trillion at the end of the first quarter of 2021.

Meanwhile, PTBA’s total equity increased from Rp 16.9 trillion in 2020 to Rp 17.6 trillion in the first quarter of 2021.

2021 Operational Performance

PTBA’s total coal production in the first quarter of 2021 was 4.5 million tons, with sales at 5.9 million tons.

The company aims to increase its coal production from 24.8 million tons in 2020 to 29.5 million tons in 2021. It also seeks to jack up its coal sales from 26.1 million tons in 2020 to 30.7 million tons in 2021.

Progress of Development Projects

Coal Gasification

The issuance of Presidential Regulation No. 109/2020, which was signed by President Joko Widodo on November 17, 2020, marked the inclusion of two PTBA projects in the list of national strategic projects. The first one is the company’s coal gasification project and the second one is the Bukit Asam Coal-Based Industrial Estate (BACBIE), both located in Tanjung Enim. Indonesia’s first coal gasification project will take place in this industrial estate and other downstream coal-based industries will also be developed there.

The issuance of the Presidential Regulation No. 109/2020 has made PTBA, Pertamina, as well as Air Products and Chemicals Inc. more optimistic that the gasification project to process coal into dimethyl ether (DME) will go as planned.

The cooperation agreement between PTBA, Pertamina, and Air Products and Chemicals Inc. was already signed on February 11, 2021. At present, all parties involved are in the process of completing other agreements.

Sumsel-8 Mine-Mouth Coal-Fired Power Plant (PLTU)

The Sumsel-8 mine-mouth PLTU, which will have a capacity of 2x620 megawatts (MW), is PTBA’s strategic project with a value of US$1.68 billion. This PLTU is part of the government’s 35,000 MW program and is developed by PTBA through PT Huadian Bukit Asam Power (HBAP) as the independent power producer (IPP). PT HBAP is a consortium consisting of PTBA and China Huadian HongKong Company Ltd. The development progress of this PLTU, which will absorb 5.4 million tons of coal annually, has reached 75.6%. The mine-mouth power plant is expected to commence full commercial operations in March 2022.

Development of Solar Power Plants (PLTS)

PTBA has also started expanding its business into the new and renewable energy sector. One of the proofs is the construction of PLTS at the Soekarno-Hatta International Airport in cooperation with PT Angkasa Pura II. The PLTS commenced full operations on October 1, 2020.

The project’s success story has paved the way for PTBA and Angkasa Pura II to explore the possibilities of developing solar power systems at other airports operated by Angkasa Pura II. The PLTS developed by PTBA and Angkasa Pura II comprises 720 solar panel systems with photovoltaic cells. It has a capacity of 241 kilowatts-peak (kWp) and is installed at Angkasa Pura II’s Airport Operation Control Center (AOCC) building.

PLTS in Ex-Mining Sites in Ombilin and Tanjung Enim

PTBA plans to develop PLTS in the company’s ex-mining sites in Ombilin, West Sumatra, and Tanjung Enim, South Sumatra, each with a capacity of 200 MW. PTBA is now in talks with PLN to be the IPP.

Coal Transportation Development with Pelindo II

PTBA has signed a HoA with PT Pelabuhan Indonesia (Pelindo) II to develop the capacity to transport coal or other commodities through rivers and ports in South Sumatra. This partnership is aimed at supporting the development of South Sumatra’s economic corridor to make the region a “national energy barn”.

Coal Transportation Project

PTBA, in cooperation with PT Kereta Api Indonesia (KAI), is developing railways for coal transportation with a capacity of 72 million tons per year by 2025. The new railways are as follows:

• Tanjung Enim – Northward: The line is set to have a carrying capacity of 20 million tons per year. The new facility of Kramasan Port, which is built by PT KAI, is expected to operate in 2024. In addition, a railway with a capacity of 5 million tons per year has successfully been operated at the Kertapati Port since the first quarter of 2020 and the capacity will be increased to 7 million tons per year by the third quarter of 2021.
• Tanjung Enim – Southward: For the Tarahan 1 line, the existing railway is developed to have a capacity of 25 million tons per year. Meanwhile, the Tarahan 2 line will have a capacity of 20 million tons per year and is set to operate in July 2025.