Jakarta, April 28, 2023 - PT Bukit Asam Tbk (PTBA), a member of the MIND ID Mining BUMN Holding, managed to maintain a positive performance in the first quarter of 2023 with net profit of Rp1.2 trillion and revenue record of Rp10.0 trillion. The Company's total assets as of March 31, 2023 amounted to Rp 46.4 trillion.The net profit achievement was supported by an increase in the Company's operational performance throughout the first quarter of 2023. PTBA's total coal production in the first quarter of 2023 reached 6.8 million tons, increasing 7 percent compared to the same period in 2022 which amounted to 6.3 million tons.
The increase in production was in line with the increase in coal sales volume by 26 percent to 8.8 million tons. In the first quarter of 2023, the Company recorded export sales of 3.6 million tons, up 59 percent compared to the same period the previous year. Meanwhile, the realization of the Domestic Market Obligation (DMO) was recorded at 5.2 million tons, growing 10 percent on an annual basis.
This year has presented the Company with a number of challenges, including corrections in coal price, market fluctuations, and geopolitical conditions. The Cost of Goods Sold experienced an increase, due to the costs of mining services, fuel, royalties, and railroad transportation, among others.
Therefore, in order to sustain positive performance, PTBA continues to strive to maximize the potential of the domestic market and export opportunities. The company also consistently prioritizes cost leadership in every line of the company, to implement an optimal sustainable efficiency.
Company Target 2023
The company targets coal production to be 41.0 million tons for 2023, up 11 percent from the realization in 2022 which amounted to 37.1 million tons, with the transportation target in 2023 increasing to 32.0 million tons or up 11 percent from the realization of transportation in 2022 which amounted to 28.8 million tons.
The Company is targeting an increase in the volume of coal sales in 2023 to 41.2 million tons, up 30 percent from the realization of coal sales in 2022 which amounted to 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 company has obtained a coal-based Industrial Estate permit or Bukit Asam Coal Based Industrial Estate in Tanjung Enim with an area of 585 Ha, and is currently in the process of moving to Special Economic Zone.
The company has prepared land area for the development of the downstream industry in collaboration with potential partners. In addition, PTBA has allocated special coal reserves for downstream projects, ensuring that the downstream industry's need for coal is met.
Coal-Fired Power Plant
PTBA through PT Huadian Bukit Asam Power (HBAP) as an Independent Power Producer (IPP) is building the Sumsel-8 Mine Mouth Power Plant with a capacity of 2x660 MW, also known as the Tanjung Lalang Power Plant. HBAP is a consortium between PTBA and China Huadian HongKong Company Ltd. This Power Plant will require around 5.4 million tons of coal per year.
The construction of the Power Plant has achieved a progress of 97 percent and is expected to start commercial operation in 2023.
In addition, PTBA and PLN are exploring early retirement of Pelabuhan Ratu Power Plant 3x350 MW. This commitment is manifested through the signing of the Principal Framework Agreement in the series of agendas for the Stated-Owned Enterprises (SOE) International Conference in Bali on October 18, 2022. After signing the Principal Framework Agreement, PTBA and PLN will carry out a due diligence process for the Power Plant early retirement program.
Renewable Energy Development
In line with PTBA's vision, the company's business expansion into the new and renewable energy sector continues. The Company is continuing to transform through business diversification to become an integrated and sustainable world-class energy and chemical company, one of which is by entering the new renewable energy (NRE) business.
On April 17, 2023, PTBA signed an agreement (Memorandum of Understanding / MoU) with HDF Energy, a company that provides renewable energy, one of which being hydrogen fuel. HDF Energy and PTBA are exploring cooperation in developing large-scale hydrogen fuel infrastructure in PTBA's operational areas as an effort to reduce carbon emissions. This infrastructure has the potential to supply consistent and sustainable green energy, which is required for PTBA's internal operations or for market sale.
The synergy with PT Jasa Marga (Persero) Tbk is another tangible manifestation of PTBA's support in efforts to reduce global carbon emissions by developing solar power plant with a capacity of 400 Kilowatt-peak (kWp) on the Jasa Marga Group toll road. The construction of the Bali Mandara Toll Road solar power plant, which was inaugurated on September 21, 2022, is proceeding very well, resulting in positive benefits in terms of energy efficiency and operational costs, as well as, of course, contributing to Indonesia's G20 Presidency in November 2022, one of which focuses on the issue of energy transition.
Previously, PTBA collaborated with PT Angkasa Pura II (Persero) to construct a solar power plant at Soekarno Hatta Airport. The solar power plant is installed in the Airport Operation Control Center (AOCC) Building and consists of 720 photovoltaic solar panel systems with a maximum capacity of 241 kWp. Since October 1, 2020, this solar power plant has been fully operational.
Following the success of developing solar power plants on the Bali Mandara Toll Road and Soekarno Hatta Airport, 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 Plants in other toll road areas managed by the Jasa Marga Group on February 24, 2023. The continuation of this MoU is a form of ongoing SOE collaboration and synergy in support of efforts to reduce global carbon emissions, in line with the government's aims to achieve the Net Zero Emissions target by 2060.
Furthermore, as a form of synergy with MIND ID Holding Members, PT Bukit Asam Tbk and PT Timah Tbk are exploring the possibility of collaboration in the development of solar power plants at Timah's operational locations. On January 26, 2023, the Renewable Energy Development Synergy MoU was signed to formalize this collaboration. PTBA will construct a solar power plant to support PT Timah's operational activities through its subsidiary, PT Bukit Energi Investama (BEI). Electricity generated by the solar power plant will be used for production activities (dredgers), lighting, and offices, expected to contribute to reduced emissions and more efficient energy costs.
PTBA is also exploring the possibility of collaboration in the development of solar power plants at Semen Indonesia Group (SIG) operational locations. On October 18, 2022, a Memorandum of Understanding (MoU) for the Development of New, Renewable Energy (NRE) for Solar Power Plants was signed, to begin the construction to meet PT Semen Padang's operational energy needs.
Not only solar power plants, PTBA and China Huadian Corporation (CHD) through a Memorandum of Understanding (MoU) signed on October 18, 2022 are exploring the development of a Wind Power Plant with a capacity of around 1,300 MW in South China and other renewable energy developments in Indonesia which is currently in the feasibility study process.
In addition to expanding business in the NRE sector, PTBA also operates a Solar Power Plant development program to turn on agricultural irrigation pumps to improve the welfare of the community around the company's operational area.
The irrigation solar power plant 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 to three times a year and the annual productivity of farmers. PTBA has constructed five irrigation solar power plants to date, which include:
- 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, South Sumatra, with a capacity of 42.5 kWp to irrigate 150 hectares of rice fields.
In line with the Company's target to increase coal transportation capacity by rail line to 72 million tons per year in 2026, the development of Tanjung Enim - Keramasan coal transport with a capacity of 20 million tons per year. PTBA scope includes the Train Loading System and Coal Handling Facility, while PT KAI’s scope is preparing the wharf and transportation facilities (carriage). This line is planned to be operational in the fourth quarter of 2024.
Furthermore, coal transportation to the Perajen Pier with a transport capacity of 20 million tons per year is being developed and is scheduled to begin operations in the third quarter of 2026, where the facility will later be used to support SOE Synergy Cooperation in the Coal Supply Chain to Increase National Electricity Resilience. The Head of Agreement was signed on February 16, 2022, by PTBA, KAI, and PLN.
Carbon Management
To support the Government in achieving the Net Zero Emission target in 2060, PTBA implements Good Mining Practice with decarbonization programs.
PTBA reclamation area had reached 2,151.84 hectares (ha) as of December 2022 and 2,689,800 trees have been planted on the area. Various types of trees planted include Sengon, Teak, Mahogany, Eucalyptus, Acacia, Angsana, Merbau, Bamboo, Jabon, Pinus, Johar, Lonkida, Gamal, Saga, Pulai, Trembesi, Waru, Cashew, Bayur, Matoa, and Laban.
PTBA has implemented a number of decarbonization activities in addition to land reclamation. In terms of operations, the company uses Eco Mechanized Mining, which involves replacing mining equipment that consumes fossil fuels with electricity. PTBA has deployed several electric-powered machines, including 7 Shovel PC-3000 Electric Excavators, 40 Hybrid 100 Ton Class Dump Trucks (Diesel and Electric), and 6 Electric Mining Pumps.
As a real step toward reducing carbon emissions, PTBA has operated 5 electric buses at Tarahan Port and 10 electric buses at the Tanjung Enim Mining Unit, for a total of 15 electric buses.
Electric vehicle adoption will continue to increase as a means of reducing carbon emissions. Carbon emissions are expected to be reduced by 16 tons of CO2/year/bus. Furthermore, the use of electric buses reduces the use of fuel oil by up to 9,672 liters per year per bus.
In addition, the company uses an E-Mining Reporting System, which is a real-time and online production reporting system, to reduce 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 Indonesian Coal Mining Association (APBI) launched the Pilot Biomass Exploitation Partnership Project at Mine Mouth Cofiring Power Plant in South Sumatra on December 22, 2022.
The Cofiring Power Plant Pilot Project is a collaborative effort between the government, private SOEs, academics and associations as a real action to reduce emissions.
For the initial stage, cofiring will be done at PTBA's Tanjung Enim 3x10 Megawatt (MW) Power Plant. At Tanjung Enim Power Plant, biomass cofiring testing is done in stages, with an initial stage of 1-5 percent. Not only reducing emissions, cofiring is also beneficial from an economic standpoint. Production forests, reclamation lands, unproductive lands, to critical/degraded lands can be used for plants that are biomass raw materials.
These decarbonization programs are part of PTBA's carbon management roadmap until 2050, which will be implemented and developed in every line of the company in a sustainable manner to give optimal results.
