Jakarta, March 7, 2022 – PT Bukit Asam Tbk (PTBA), member of Mining Industry Indonesia (MIND ID), made history by recording the highest net profit throughout the Company's operations.The Company managed to record a net profit of Rp7.91 trillion, a significant 231% increase from the 2020 achievement of Rp2.39 trillion with operating revenues of Rp29.26 trillion, or an increase of 69% from the previous year of Rp17.33 trillion. Along with these achievements, the Company recorded an increase in total assets of around 50% from Rp24.06 trillion as of December 31, 2020, to Rp 36.12 trillion as of December 31, 2021.
The brilliant achievements achieved by the Company are supported by solid operational performance throughout 2021 in line with the global and national economic recovery, which has pushed up demand for coal. The momentum of a significant increase in global coal commodity prices also contributed to this achievement. The average Newcastle coal price index and Indonesian Coal Index (ICI) in 2021 were US$137.28 per ton and US$95.05 per ton.
On the other hand, various sustainable efficiency strategies are also implemented by implementing optimal company operations by prioritizing cost leadership in every line of the business.
Production and Sales 2021
In 2021, the Company's coal production increased by 21% from the previous year or increased to 30.04 million tons. Coal transportation capacity also increased to 25.42 million tons, up 7% from 2020.
This increase in coal production and transportation capacity was followed by an increase in coal sales volume. Throughout 2021, the Company sold 28.37 million tons of coal, up 9% from the previous year, with a 57% domestic sales ratio and 43% exports. The increase in sales is inseparable from the management's strategy in optimizing export market opportunities to several countries such as China, Taiwan, the Philippines, India, Japan, and Vietnam.
Company Target 2022
The Company aims to increase its production to be 36.41 million tons by 2022, increasing 21% from the previous year's realization of 30.04 million tons. The transportation target in 2022 is also increased to 31.50 million tons, rising 24% from the realization of transportation in 2021 of 25.42 million tons.
As for the coal sales volume in 2022, the Company targets 37.10 million tons, or a 31% increase from the realized coal sales in 2021 of 28.37 million tons.
Development Project Progress
Coal Gasification
The issuance of Presidential Regulation No. 109/2020, which was signed on November 17, 2020, by President Joko Widodo, 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, South Sumatra.
PTBA, Pertamina, and Air Products & Chemicals Inc (APCI) held a groundbreaking for the downstream coal-to-dimethyl ether (DME) project on January 24, 2022, in the Tanjung Enim Industrial Estate, Muara Enim Regency, South Sumatra. This activity was attended and inaugurated by the President of the Republic of Indonesia, Joko Widodo.
This National Strategic Project will be carried out in Tanjung Enim for 20 years by bringing in foreign investment from APCI of USD 2.3 billion or equivalent to Rp 32.9 trillion. With the utilization of 6 million tons of coal per year, this project can produce 1.4 million DME per year to reduce LPG imports by more than 1 million tons per year.
Sumsel-8 Mine Mouth Coal-Fired Power Plant (PLTU)
Sumsel-8 mine-mouth coal-fired power plant with a capacity of 2x620 MW is a strategic project of PTBA with a value of US$ 1.68 billion. This PLTU is part of the 35 thousand MW project built by PTBA through PT Huadian Bukit Asam Power (PT HBAP) as an Independent Power Producer (IPP).
PT HBAP is a consortium between PTBA and China Huadian Hongkong Company Ltd. The construction progress of the PLTU project, which will require 5.4 million tons of coal per year, has reached 95%. This PLTU is expected to be fully operational commercially in 2022.
Sumsel-8 mine-mouth coal-fired power plant utilizes environmentally friendly technology supercritical. The PLTU also applies technology flue gas desulfurization (FGD), which functions to minimize sulfur dioxide (SO2) from PLTU exhaust gas emissions.
Development of Solar Power Plants (PLTS)
The Company's business expansion into the new and renewable energy sector is also starting to roll. One form of its development is PLTS at Soekarno Hatta Airport in collaboration with PT Angkasa Pura II (Persero). The PLTS consists of 720 solar panel systems with photovoltaics with a maximum capacity of 241 kilowatt-peak (kWp) installed in the Airport Operation Control Center (AOCC) Building. PLTS was fully operational on October 1, 2020.
The Company is currently also planning to develop PLTS in the Company's post-mining areas, namely:
- PLTS in Tanjung Enim with a capacity of up to 200 MW and a total area of 224 Ha;
- PLTS in Ombilin with a capacity of up to 200 MW and a total area of 201 Ha
- PLTS in Bantuas, East Kalimantan.
In addition, PTBA, together with PT Jasa Marga (Persero) Tbk, is also exploring the potential for cooperation in the development of PLTS on the Jasa Marga Group toll road, which is marked by the signing of Memorandum of Understanding (MoU) on February 2, 2022.
One form of implementation from the signing of the MoU is the groundbreaking PLTS on the Bali Mandara Toll Road on March 5, 2022. PLTS has a capacity of a 400 kilowatt peak (kWp) and will be built through PTBA's subsidiary, PT Bukit Energi Investama. This project is a concrete manifestation of the Company's commitment to reduce global carbon emissions and support Indonesia's G20 presidency.
Development of Electric Mining Operational Vehicles
PTBA, in collaboration with PT Industri Kereta Api (Persero), signed a Memorandum of Understanding to develop an electricity-based mining operational vehicle on December 7, 2021. This collaboration is a form of BUMN synergy supporting the government to achieve the Net Zero Emission by 2060. This synergy is also one of PTBA's concrete steps to realize the Company's commitment to decarbonization following PTBA's vision to become a world-class energy and chemical company that cares about the environment.
Development of Steam Power Plants in Special Economic Zones
PTBA, in collaboration with PT Bintan Alumina Indonesia (BAI), signed a Memorandum of Understanding in the context of exploring the potential to develop a steam power plant project in the Galang Batang Special Economic Zone (SEZ) in Bintan, Riau Islands on December 21, 2021. This exploration effort also opens up opportunities for PTBA to support coal supply for smelter plants and other potential developments.
Coal Transport Project
in collaboration with PT Kereta Api Indonesia (Persero), is developing railways for coal transportation with a capacity of 72 million tons/year in 2026, which consists of:
- Development of the new Tanjung Enim - Northward
- Existing facility development
- Tanjung Enim – Northward: Kertapati Port, the expansion of the existing line capacity to 5 million tons per year has been successfully operated since the Q1 2020 and has been increased to a capacity of 7 million tons in Q4 2021.
- Tanjung Enim – Southward: Tarahan-1 expands existing line capacity to 25 million tons/year in Q2 2021.
