The achievement of net profit was supported by revenue of Rp42.6 trillion, 146 percent increase over the same period last year of Rp29.3 trillion.
The Company's total assets as of December 31, 2022 amounted to Rp45.4 trillion, or 126 percent increase compared to the previous year of Rp36.1 trillion.
The significant increase in the Company's revenue and net profit was driven by global and national economic recovery followed by increased demand in coal, as well as a significant increase in coal selling prices.
This brilliant achievement was also supported by the Company's solid operational performance throughout 2022. The Company prioritizes cost leadership in every line to successfully implement an optimal sustainable efficiency.
Operational Performance
PTBA's total coal production in 2022 reached 37.1 million tons, an increase of 24 percent compared to the previous year of 30.04 million tons. Meanwhile, PTBA's coal sales until 2022 amounted to 31.6 million tons, growing 12 percent compared to the previous year of 28.4 million tons.
Throughout 2022, the Company recorded export sales of 12.5 million tons and the realization of the Domestic Market Obligation (DMO) of 19.2 million tons (216 percent of the DMO target) or 119 percent of the realization in 2021 of 16.1 million tons.
Company Target 2023
The company targets coal production of 41 million tons in 2023, 11 percent increase from the realization in 2022 of 37.1 million tons. The target for transportation in 2023 is 32 million tons, 11 percent increase from the realization of transportation in 2022 of 28.8 million tons.
The Company targets an increase in volume of coal sales in 2023 to 41.2 million tons, 30 percent higher from the realization of coal sales in 2022 of 31.7 million tons.
Development Project Progress
Coal Downstreaming
In line with the vision of becoming a world-class energy and chemical company that cares about the environment, PTBA is committed to supporting government policies that encourage coal downstream and maintain national energy security. The plan is in line with the government policies 2017 National Energy General Plan (RUEN).
Coal-Fired Power Plant (CFPP)
PTBA through PT Huadian Bukit Asam Power (HBAP) as an Independent Power Producer (IPP) is building the Sumsel-8 Mine Mouth CFPP with a capacity of 2x660 MW, also known as CFPP Tanjung Lalang. HBAP is a consortium between PTBA and China Huadian HongKong Company Ltd.
The construction of the CFPP, which will require around 5.4 million tons of coal per year, has achieved construction progress of 97 percent. The power plant is expected to begin completing the commissioning test process by the end of 2022, and start commercial operations in 2023.
In addition, PTBA and PLN are exploring the early retirement of the CFPP Pelabuhan Ratu 3x350 MW. This commitment was stated through the signing of the Principal Framework Agreement in the agenda series of the Stated-Owned Enterprises (SOE) International Conference in Bali on October 18, 2022. After the signing of this Principal Framework Agreement, PTBA and PLN will carry out a due diligence process for the early retirement program the power plant.
Renewable Energy Development
In line with PTBA's vision of becoming a world-class energy and chemical company that cares about the environment, the Company's business expansion into the new and renewable energy sector continues. The transformation through business diversification to become an integrated and sustainable world-class energy and chemical company continues including entering the new renewable energy (NRE) business.
The concrete form of PTBA's efforts to reduce global carbon emissions is also marked by the synergy with PT Jasa Marga (Persero) Tbk in the development of Solar Power Plant with a capacity of 400 Kilowatt-peak (kWp) on the Jasa Marga Group toll roads. Solar Power Plant on the Bali-Mandara Toll Road has been completed and inaugurated on September 21, 2022, resulting in positive benefits such as energy efficiency and lower operational costs, and of course supporting Indonesia's G20 Presidency, one of which focuses on the issue of energy transition.
Previously, PTBA had built Solar Power Plant at Soekarno Hatta Airport in collaboration with PT Angkasa Pura II (Persero). The Solar Power Plant consists of 720 solar panel systems with photovoltaics with a maximum capacity of 241 kWp and is installed in the Airport Operation Control Center (AOCC) Building. This Solar Power Plant has been fully operational since October 1, 2020.
On February 24, 2023, PT Bukit Asam Tbk and PT Jasa Marga (Persero) Tbk signed an extension of the Memorandum of Understanding (MoU) for the Development of Solar Power Plant in other toll road areas that are under the management of the Jasa Marga Group. The MoU extension is a form of continuous SOE collaboration and synergy in supporting efforts to reduce global carbon emissions, supporting the government's target to achieve the Net Zero Emission in 2060.
In addition, PT Bukit Asam Tbk and PT Timah Tbk are exploring the potential for cooperation in developing a Solar Power Plant at PT Timah's operational location, creating synergy between the MIND ID Holding Members. This collaboration is marked by the signing of a Memorandum of Understanding (MoU) on the Synergy of Renewable Energy Development on January 26, 2023. PTBA through its subsidiary, PT Bukit Energi Investama (BEI), will build a Solar Power Plant to support PT Timah's operational activities. Electricity from the Solar Power Plant will be used for production (dredgers), lighting and office operational activities which are expected to contribute to reduced emissions and more efficient energy costs.
PTBA is also exploring the potential for cooperation in the development of a Solar Power Plant at Semen Indonesia Group (SIG)’s the operational locations, starting from PT Semen Padang's operational area. This collaboration was marked by the signing of a Memorandum of Understanding (MoU) for the Development of New Renewable Energy (NRE) for Solar Power Plants on October 18, 2022.
Not only solar power plants, PTBA and China Huadian Corporation (CHD) signed a Memorandum of Understanding (MoU) on October 18, 2022 on exploring the development of 1,300 MW Wind Power Plant in South China and the development of other renewable energy in Indonesia which is currently in the process of study.
PTBA also has solar power irrigation development program to turn on agricultural irrigation pumps to improve the welfare of the community around the company's work area.
The solar irrigation CSR program is PTBA's effort to encourage the use of renewable energy, empower the community, while preserving the environment. Solar power plant as an energy source for irrigation pumps can increase the frequency of harvests and the annual productivity of farmers up to 3 times a year. There are five solar irrigation projects that have been built by PTBA to date including:
- Solar irrigation in Trimulyo Village, Pesawaran Regency, Lampung, operating from 2020 with a capacity of 35 kWp, distributing water for 167 hectares of agricultural land.
- Solar irrigation in Talawi Village, Sawahlunto City, West Sumatra, with a capacity of 16.5 kWp, operating since 2019 distributing water to 62 hectares of rice fields.
- Solar irrigation in Tanjung Raja Village, Muara Enim Regency, South Sumatra with a capacity of 16.5 kWp distributing water to 63 hectares of rice fields.
- Solar irrigation in Nanjungan Village, Lahat Regency, South Sumatra, with a capacity of 27.5 kWp, operating in 2022 distributing water to approximately 100 hectares land area.
- Solar irrigation in Rejosari Mataram Village, Central Lampung Regency, Lampung, with a capacity of 42.5 kWp to irrigate 150 hectares of rice fields.
Coal Transport Project
In line with the Company's target to increase the coal transportation capacity of the railway line to 72 million tons per year by 2026, the Tanjung Enim - Keramasan coal transportation development is carried out with a capacity of 20 million tons per year, with the scope built by PTBA is the Train Loading System and Coal Handling Facility while PT KAI prepares the dock and transportation facilities (carriages). This line is planned to be operational in the fourth quarter of 2024.
In addition, coal transportation is also being developed to Perajen Pier with a carrying capacity of 20 million tons per year and is planned to operate in the third quarter of 2026, where the facility will later be used to support the Synergy Cooperation of SOEs in the Coal Supply Chain to Improve National Electricity Security. The signing of the Head of Agreement has been carried out by PTBA, KAI, and PLN on February 16, 2022.
Carbon Management
To support the Government in achieving the Net Zero Emission target by 2060, PTBA implements Good Mining Practice with decarbonization programs.
Until December 2022, the total reclamation area of PTBA has reached 2.151,84 hectares (ha) and 2,689,800 trees have been planted. Various types of trees planted include Sengon, Teak, Mahogany, Eucalyptus, Acacia, Angsana, Merbau, Bamboo, Jabon, Pine, Johar, Longkida, Gamal, Saga, Pulai, Trembesi, Waru, Cashew, Bayur, Matoa, and Laban.
Not only land reclamation, PTBA has run a number of programs to support decarbonization. From the operational side, the company implements Eco Mechanized Mining, which is replacing mining equipment that uses fossil fuels into electricity. Several electricity-based tools that have been used by PTBA include 7 Electric Excavators of the Shovel PC-3000 type, 40 Dump Trucks in the 100 Ton hybrid class (Diesel and Electric), and 6 Electric-based Mining Pumps.
The use of electric vehicles will continue to increase as a step to reduce carbon emissions. Today, PTBA operates 5 units of electric buses at Tarahan Port and 10 units of electric buses at the Tanjung Enim Mining Unit. The reduction of carbon emissions is estimated to reach 16 tons of CO2/year/bus. In addition, the use of electric buses reduces the use of fuel oil (BBM) up to 9,672 liters/year/bus.
The company also implements the E-Mining Reporting System, which is a real time and online production reporting system so as to minimize conventional monitoring that uses fuel.
PTBA together with the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves), Ministry of Energy and Mineral Resources (ESDM), Ministry of Environment and Forestry (KLHK), Indonesian Forest Entrepreneurs Association (APHI) and the Indonesian Coal Mining Association (APBI) launched the Biomass Business Partnership Pilot Project for Cofiring of the Mine Mouth PLTU in South Sumatra on December 22, 2022.
The Cofiring PLTU Pilot Project is a collaborative effort of the government, private SOEs, academics and associations as a concrete action to reduce emissions. For the initial stage of 1-5 percent, biomass cofiring testing will be carried out at PTBA's Tanjung Enim 3x10 Megawatt (MW) PLTU. Not only reducing emissions, cofiring is also beneficial from an economic standpoint. Production forests, reclamation lands, unproductive lands, and critical/degraded lands can be used for plants as biomass raw materials.
These decarbonization programs are part of PTBA's carbon management roadmap to 2050 which will continue to be implemented and developed in a sustainable manner in every line of the company to provide optimal results.
